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25
TRAVELCENTERS OF AMERICA Q1 2019 Refuel. Replenish. Refresh.
Transcript of Refuel. Replenish. Refresh.s22.q4cdn.com/786577010/files/doc_presentations/2019/05/v2/TA_I… ·...
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
2
W A R N I N G C O N C E R N I N G F O R W A R D - L O O K I N G S T A T E M E N T S
This presentation contains statements that constitute forward-looking statements within the meaning of the private securities litigation reform act of 1995 and other securities laws Whenever TA uses words such as ldquobelieverdquo ldquoexpectrdquo ldquoanticipaterdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquowillrdquo ldquomayrdquo and negatives or derivatives of these or similar expressions TA is making forward-looking statements These forward-looking statements are based upon TArsquos 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 TArsquos forward-looking statements as a result of various factors You should not place undue reliance upon forward-looking statements Except as required by law TA does not intend to update or change any forward-looking statement as a result of new information future events or otherwise
This presentation contains Non-Gaap financial metrics including ldquoEBITDArdquo and ldquoADJUSTED EBITDArdquo in the exhibits section Reconciliation for those metrics to the closest US generally accepted accounting principles (GAAP) are included here to
3
INVESTMENT HIGHLIGHTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Barriers to Entry
One of only three nationwide
operators of travel centers in the
United States
Nonfuel Drivers led by Truck Service Customer Serviceand Marketing programsTA is expanding its off site truck
services and improving the customer
service and marketing programs
it employs
Right Strategy
Our full service approach is a
competitive advantage that
allows us to better address fleet
company and professional driver
challenges
Cost Controls amp Managing Spending
TA is focused on controlling spending
Commercial Growth
Trucking trends present an
opportunity for travel center
companies with a full service
strategy TA is positioned to serve a
broader truck owner market
Site Expansion TA intends to expand its travel
center network through
franchising acquisitions and
development
4
ONE OF ONLY THREE NATIONWIDE OPERATORS OF TRAVEL CENTERS
IN THE UNITED STATES
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TArsquos business includes 258 full service travel centers and 43 standalone restaurants
TArsquos nonfuel revenues come from truck repair and maintenance full service restaurants quick service restaurants or QSRs stores and other amenities
and services (ie showers scales parking) designed to appeal to the professional driver and other highway travelers
TA sells over-the-road diesel fuel principally to long-haul truckers and gasoline under multiple oil company brands at its ldquoTArdquo ldquoPetro Stopping Centersrdquo
and ldquoTA Expressrdquo branded truck stops
(1) The 2019 amount excluded $28 million of one time loyalty income recognized as a result of implementing a revised customer loyalty program and the 2018 amount excludes $233 million benefit from the federal biodiesel blendersrsquo tax credit that was retroactively reinstated for the full year 2017
FUEL AND NONFUEL GROSS MARGIN MIX (1)FUEL AND NONFUEL REVENUE MIX
70
30
LTM Fuel Revenues
LTM Nonfuel Revenues
23
77
LTM Fuel Gross MarginLTM Nonfuel Gross Margin
5
POW ERFUL MODELT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Focused on Expanding TArsquos Full Service Strategy
SAME SITE NONFUEL REVENUES AND NONFUEL MARGIN555
550556
564
37
41
22
NONFUEL REVENUE MIX Q1 2019
Truck service
Store and retail services
Restaurants
30
59
24
00
10
20
30
40
50
60
70
Truck service Store and retail services Restaurants
NONFUEL REVENUE GROWTH Q1 19 vs Q1 18
619 618
604
609
595
600
605
610
615
620
$-
$200
$400
$600
$800
$1000
$1200
$1400
$1600
$1800
$2000
(Mill
ions
)
Consolidated Same Site Nonfuel Revenue Consolidated Same Site Nonfuel Margin Percentage
$434+27
$423
$1717 $1778+36
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
image1png
image2png
image3png
image4png
25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
-
| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
2
W A R N I N G C O N C E R N I N G F O R W A R D - L O O K I N G S T A T E M E N T S
This presentation contains statements that constitute forward-looking statements within the meaning of the private securities litigation reform act of 1995 and other securities laws Whenever TA uses words such as ldquobelieverdquo ldquoexpectrdquo ldquoanticipaterdquo ldquointendrdquo ldquoplanrdquo ldquoestimaterdquo ldquowillrdquo ldquomayrdquo and negatives or derivatives of these or similar expressions TA is making forward-looking statements These forward-looking statements are based upon TArsquos 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 TArsquos forward-looking statements as a result of various factors You should not place undue reliance upon forward-looking statements Except as required by law TA does not intend to update or change any forward-looking statement as a result of new information future events or otherwise
This presentation contains Non-Gaap financial metrics including ldquoEBITDArdquo and ldquoADJUSTED EBITDArdquo in the exhibits section Reconciliation for those metrics to the closest US generally accepted accounting principles (GAAP) are included here to
3
INVESTMENT HIGHLIGHTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Barriers to Entry
One of only three nationwide
operators of travel centers in the
United States
Nonfuel Drivers led by Truck Service Customer Serviceand Marketing programsTA is expanding its off site truck
services and improving the customer
service and marketing programs
it employs
Right Strategy
Our full service approach is a
competitive advantage that
allows us to better address fleet
company and professional driver
challenges
Cost Controls amp Managing Spending
TA is focused on controlling spending
Commercial Growth
Trucking trends present an
opportunity for travel center
companies with a full service
strategy TA is positioned to serve a
broader truck owner market
Site Expansion TA intends to expand its travel
center network through
franchising acquisitions and
development
4
ONE OF ONLY THREE NATIONWIDE OPERATORS OF TRAVEL CENTERS
IN THE UNITED STATES
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TArsquos business includes 258 full service travel centers and 43 standalone restaurants
TArsquos nonfuel revenues come from truck repair and maintenance full service restaurants quick service restaurants or QSRs stores and other amenities
and services (ie showers scales parking) designed to appeal to the professional driver and other highway travelers
TA sells over-the-road diesel fuel principally to long-haul truckers and gasoline under multiple oil company brands at its ldquoTArdquo ldquoPetro Stopping Centersrdquo
and ldquoTA Expressrdquo branded truck stops
(1) The 2019 amount excluded $28 million of one time loyalty income recognized as a result of implementing a revised customer loyalty program and the 2018 amount excludes $233 million benefit from the federal biodiesel blendersrsquo tax credit that was retroactively reinstated for the full year 2017
FUEL AND NONFUEL GROSS MARGIN MIX (1)FUEL AND NONFUEL REVENUE MIX
70
30
LTM Fuel Revenues
LTM Nonfuel Revenues
23
77
LTM Fuel Gross MarginLTM Nonfuel Gross Margin
5
POW ERFUL MODELT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Focused on Expanding TArsquos Full Service Strategy
SAME SITE NONFUEL REVENUES AND NONFUEL MARGIN555
550556
564
37
41
22
NONFUEL REVENUE MIX Q1 2019
Truck service
Store and retail services
Restaurants
30
59
24
00
10
20
30
40
50
60
70
Truck service Store and retail services Restaurants
NONFUEL REVENUE GROWTH Q1 19 vs Q1 18
619 618
604
609
595
600
605
610
615
620
$-
$200
$400
$600
$800
$1000
$1200
$1400
$1600
$1800
$2000
(Mill
ions
)
Consolidated Same Site Nonfuel Revenue Consolidated Same Site Nonfuel Margin Percentage
$434+27
$423
$1717 $1778+36
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
3
INVESTMENT HIGHLIGHTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Barriers to Entry
One of only three nationwide
operators of travel centers in the
United States
Nonfuel Drivers led by Truck Service Customer Serviceand Marketing programsTA is expanding its off site truck
services and improving the customer
service and marketing programs
it employs
Right Strategy
Our full service approach is a
competitive advantage that
allows us to better address fleet
company and professional driver
challenges
Cost Controls amp Managing Spending
TA is focused on controlling spending
Commercial Growth
Trucking trends present an
opportunity for travel center
companies with a full service
strategy TA is positioned to serve a
broader truck owner market
Site Expansion TA intends to expand its travel
center network through
franchising acquisitions and
development
4
ONE OF ONLY THREE NATIONWIDE OPERATORS OF TRAVEL CENTERS
IN THE UNITED STATES
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TArsquos business includes 258 full service travel centers and 43 standalone restaurants
TArsquos nonfuel revenues come from truck repair and maintenance full service restaurants quick service restaurants or QSRs stores and other amenities
and services (ie showers scales parking) designed to appeal to the professional driver and other highway travelers
TA sells over-the-road diesel fuel principally to long-haul truckers and gasoline under multiple oil company brands at its ldquoTArdquo ldquoPetro Stopping Centersrdquo
and ldquoTA Expressrdquo branded truck stops
(1) The 2019 amount excluded $28 million of one time loyalty income recognized as a result of implementing a revised customer loyalty program and the 2018 amount excludes $233 million benefit from the federal biodiesel blendersrsquo tax credit that was retroactively reinstated for the full year 2017
FUEL AND NONFUEL GROSS MARGIN MIX (1)FUEL AND NONFUEL REVENUE MIX
70
30
LTM Fuel Revenues
LTM Nonfuel Revenues
23
77
LTM Fuel Gross MarginLTM Nonfuel Gross Margin
5
POW ERFUL MODELT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Focused on Expanding TArsquos Full Service Strategy
SAME SITE NONFUEL REVENUES AND NONFUEL MARGIN555
550556
564
37
41
22
NONFUEL REVENUE MIX Q1 2019
Truck service
Store and retail services
Restaurants
30
59
24
00
10
20
30
40
50
60
70
Truck service Store and retail services Restaurants
NONFUEL REVENUE GROWTH Q1 19 vs Q1 18
619 618
604
609
595
600
605
610
615
620
$-
$200
$400
$600
$800
$1000
$1200
$1400
$1600
$1800
$2000
(Mill
ions
)
Consolidated Same Site Nonfuel Revenue Consolidated Same Site Nonfuel Margin Percentage
$434+27
$423
$1717 $1778+36
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
image1png
image2png
image3png
image4png
25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
- Slide Number 1
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
4
ONE OF ONLY THREE NATIONWIDE OPERATORS OF TRAVEL CENTERS
IN THE UNITED STATES
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TArsquos business includes 258 full service travel centers and 43 standalone restaurants
TArsquos nonfuel revenues come from truck repair and maintenance full service restaurants quick service restaurants or QSRs stores and other amenities
and services (ie showers scales parking) designed to appeal to the professional driver and other highway travelers
TA sells over-the-road diesel fuel principally to long-haul truckers and gasoline under multiple oil company brands at its ldquoTArdquo ldquoPetro Stopping Centersrdquo
and ldquoTA Expressrdquo branded truck stops
(1) The 2019 amount excluded $28 million of one time loyalty income recognized as a result of implementing a revised customer loyalty program and the 2018 amount excludes $233 million benefit from the federal biodiesel blendersrsquo tax credit that was retroactively reinstated for the full year 2017
FUEL AND NONFUEL GROSS MARGIN MIX (1)FUEL AND NONFUEL REVENUE MIX
70
30
LTM Fuel Revenues
LTM Nonfuel Revenues
23
77
LTM Fuel Gross MarginLTM Nonfuel Gross Margin
5
POW ERFUL MODELT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Focused on Expanding TArsquos Full Service Strategy
SAME SITE NONFUEL REVENUES AND NONFUEL MARGIN555
550556
564
37
41
22
NONFUEL REVENUE MIX Q1 2019
Truck service
Store and retail services
Restaurants
30
59
24
00
10
20
30
40
50
60
70
Truck service Store and retail services Restaurants
NONFUEL REVENUE GROWTH Q1 19 vs Q1 18
619 618
604
609
595
600
605
610
615
620
$-
$200
$400
$600
$800
$1000
$1200
$1400
$1600
$1800
$2000
(Mill
ions
)
Consolidated Same Site Nonfuel Revenue Consolidated Same Site Nonfuel Margin Percentage
$434+27
$423
$1717 $1778+36
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
- Slide Number 1
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
5
POW ERFUL MODELT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Focused on Expanding TArsquos Full Service Strategy
SAME SITE NONFUEL REVENUES AND NONFUEL MARGIN555
550556
564
37
41
22
NONFUEL REVENUE MIX Q1 2019
Truck service
Store and retail services
Restaurants
30
59
24
00
10
20
30
40
50
60
70
Truck service Store and retail services Restaurants
NONFUEL REVENUE GROWTH Q1 19 vs Q1 18
619 618
604
609
595
600
605
610
615
620
$-
$200
$400
$600
$800
$1000
$1200
$1400
$1600
$1800
$2000
(Mill
ions
)
Consolidated Same Site Nonfuel Revenue Consolidated Same Site Nonfuel Margin Percentage
$434+27
$423
$1717 $1778+36
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
6
THE TA FOOTPRINTT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA has the geographic footprint in place to support professional drivers and highway motorists
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
(1) Source Bureau of Transportation Statistics 2012 Commodity Flows Survey Freight activity is ranked by dollar value of total shipment
More than 50 of TArsquos travel centers are located in the 13 states with the highest concentration
of truck traffic
US Freight of TAState Activity Rank Petro SitesTexas 1 23California 2 13Illinois 3 11Ohio 4 15Pennsylvania 5 11NY NJ FL MIGA IN NC LA 6-13 58
Total 131
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
7
LARGE SITES
-A typical site includes ~200 truck parking spaces on ~25 acres that provides more parking showers laundry business center services fitness and entertainment options than primary competitors
STORERETAIL SERVICES
-Fresh Food Offerings-Premium Coffee-ParkingShowers-Tobacco-Lottery-Driver amp Cab Retail Items-Scales
TRUCK SERVICE
-Nationwide Truck Maintenance amp Repair-Roadsquad Roadside Emergency Service amp Call Center Services
-Tech OnSITE TA Mobile Maintenance-Commercial Tire Network Independent Tire Dealer
FOOD SERVICE
-236 Casual Dining Restaurant-453 Quick Service Restaurant(s) QSRldquo-Grab N Go options-Two proprietary casual dining brands Iron Skillet amp Country Pride fast casual offerings like Black Bear Diner Bob Evans and Fuddruckers-37 QSR Brands
ABOVE THE COMPETITIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
For 45 years TA has been focused on full service due to the value it brings customers and TA Our two competitors recognize this and they are trying to catch up
SMALLER SITESA typical site includes ~80 truck parking spaces on ~9-13 acres with fewer services and food service choices
C O M P E TI TOR S I T E S
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
image1png
image2png
image3png
image4png
25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
- Slide Number 1
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
8
SOLID LONG TERM INDUSTRY OUTLOOKT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
In absolute terms while trucks share of total tonnage is projected to decline its total volume transported is projected to increase substantially more than any other transportation mode
TArsquos primary focus has been to provide fuel and nonfuel products and services to long haul truck drivers
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
TRUCKLOAD (ldquoTLrdquo) VOLUME (1)TRUCKSrsquo SHARE OF TOTAL TONNAGE (1)
Truckload tonnage growth reflects the anticipated performance of key commodities and freight-market
segments
707
679671
2017 2023 2028
TRUCKS SHARE OF TOTAL FREIGHT REVENUE (1)
EstimatedAverage Annual Expansion
(1) American Trucking Associations The US Freight Transportation Forecast
American Trucking Associations amp TA estimates
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
9
Average Annual Expansion
LESS-THAN-TRUCKLOAD-VOLUME (ldquoLTLrdquo)
THE CHANGING LANDSCAPET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
The maturation of online spending continues and this is contributing to how goods are trucked It is expected there will be more trucks delivering more packages via shorter hauls These deliveries are occurring through LTL TL with LTL capabilities and private truck companies at the expense of certain
truck load carriers (1) But TL carriers are expected to remain significant
GROWTH IN LESS-THAN-TRUCKLOAD (ldquoLTLrdquo) TONNAGE (2)
2018 2023 2028
1534million
1791million
2069million
50 50 50
49 49 48
1 1 2
0
20
40
60
80
100
120
2018 2023 2028
TRUCKLOAD TONNAGE (2)
Less-than-TruckloadTruckloadPrivate Truck
(1) Stifel Nicolaus(2) American Trucking Associations The US Freight Transportation Forecast
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
image1png
image2png
image3png
image4png
25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
- Slide Number 1
- Slide Number 2
- Slide Number 3
- Slide Number 4
- Slide Number 5
- Slide Number 6
- Slide Number 7
- Slide Number 8
- Slide Number 9
- Slide Number 10
- Slide Number 11
- Slide Number 12
- Slide Number 13
- Slide Number 14
- Slide Number 15
- Slide Number 16
- Slide Number 17
- Slide Number 18
- Slide Number 19
- Slide Number 20
- Slide Number 21
- Slide Number 22
- Slide Number 23
- Slide Number 24
- Slide Number 25
-
| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
10
In many cases fleets are looking for solutions like TA to help them maximize driver retention
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
DRIVER SHORTAGE
(1) American Trucking Associations
There is a driver shortage in the for-hire truckload industry(1) Increasing federal regulation and restrictions are contributing to the shortage and affecting driverfleet
profitability
DRIVER HOURS OF SERVICE
ELECTRONIC LOGGING DEVICES
PENALTIES FOR PARKING ILLEGALLY+ +
= Fleets Are Looking For Solutions To Increase Driver Satisfaction and Driver EfficiencyWhich Can Help Retain Drivers
SAFETY REGULATION ENFORCEMENT +
2011 2016 2018
Overall Best Truck Stop Experience 3 to 1 5 to 1 6 to 1Most Comprehensive Driver Services 4 to 1 5 to 1 7 to 1
Parking Lots Largest 3 to 1 7 to 1 6 to 1Easiest to Maneuver 3 to 1 6 to 1 5 to 1
Restaurants Best Overall Experience - 5 to 1 6 to 1Best Overall Food 4 to 1 6 to 1 6 to 1
Truck Repair amp Best Overall Maintenance Shops 4 to 1 4 to 1 5 to 1Maintenance Most Complete Services 5 to 1 7 to 1 7 to 1
Best Roadside Assistance - 4 to 1 4 to 1
Driver Preference for TA and Petro vs Next Closest Truck Stop Brand
Area Category
Sheet1
Sheet2
Sheet3
For Sarah Moss
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
image3png
image4png
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
image1png
image2png
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
image1png
image2png
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Area | Category | 2011 | 2016 | 2018 | ||||||||
| Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | ||||||||||||
| Overall | Best Truck Stop Experience | 3 to 1 | 5 to 1 | 6 to 1 | ||||||||
| Most Comprehensive Driver Services | 4 to 1 | 5 to 1 | 7 to 1 | |||||||||
| Parking Lots | Largest | 3 to 1 | 7 to 1 | 6 to 1 | ||||||||
| Easiest to Maneuver | 3 to 1 | 6 to 1 | 5 to 1 | |||||||||
| Restaurants | Best Overall Experience | - | 5 to 1 | 6 to 1 | ||||||||
| Best Overall Food | 4 to 1 | 6 to 1 | 6 to 1 | |||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | 4 to 1 | 5 to 1 | ||||||||
| Maintenance | Most Complete Services | 5 to 1 | 7 to 1 | 7 to 1 | ||||||||
| Best Roadside Assistance | - | 4 to 1 | 4 to 1 | |||||||||
| Most Skilled and Best Equipped for New Truck Technologies | - | 6 to 1 | 6 to 1 | |||||||||
| 2017 | 2016 | hellip | 2011 | ||||||||||||||||
| Area | Category | Driver Preference for TA and Petro vs Next Closest Truck Stop Brand | Area | Category | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Area | Category | Driver Preferencefor TA and Petrovs Next ClosestTruck Stop Brand | |||||||||||
| Overall | Best Truck Stop Experience | 6 to 1 | Overall | Best Truck Stop Experience | 5 to 1 | Overall | Best Overall Truck Stop | 3 to 1 | |||||||||||
| Most Comprehensive Driver Services | 7 to 1 | Most Comprehensive Driver Services | 5 to 1 | Most Comprehensive Driver Services | 4 to 1 | ||||||||||||||
| Most Trustworthy Brand | 3 to 1 | Most Trustworthy Brand | 3 to 1 | Employees | Best Employees | 3 to 1 | |||||||||||||
| Employees | Best Employees | 2 to 1 | Employees | Best Employees | 2 to 1 | Friendliest Maintenance Staff | 5 to 1 | ||||||||||||
| Most Respectful to Drivers | 2 to 1 | Most Respectful to Drivers | 3 to 1 | Most Trusted Maintenance Staff | 6 to 1 | ||||||||||||||
| Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 3 to 1 | Best Employee Understanding of Truckers | 4 to 1 | ||||||||||||||
| Friendliest Maintenance and Repair Write-up Staff | 3 to 1 | Friendliest Maintenance Write-up Staff | 3 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | |||||||||||||
| Friendliest Restaurant Staff | 7 to 1 | Friendliest Restaurant Staff | 5 to 1 | Easiest to Maneuver Fueling Lanes | 2 to 1 | ||||||||||||||
| Maintenance and Repair Staff Most Trusted to Perform Job Right | 6 to 1 | Most Trusted to Perform Job Right Maintenance Staff | 6 to 1 | ||||||||||||||||
| Best Customer Service Process | 2 to 1 | Best Customer Service | 3 to 1 | ||||||||||||||||
| Fuel | Quickest Fueling Time | 2 to 1 | Fuel | Quickest Fueling Time | 2 to 1 | ||||||||||||||
| Easiest to Maneuver Fueling Lane | 3 to 1 | Easiest to Maneuver Fueling Lanes | 4 to 1 | ||||||||||||||||
| Best Winterized Fuel | 3 to 1 | ||||||||||||||||||
| Parking Lots | Largest | 8 to 1 | Parking Lots | Largest | 7 to 1 | Parking Lots | Largest | 3 to 1 | |||||||||||
| Easiest to Maneuver | 3 to 1 | ||||||||||||||||||
| Easiest to Maneuver | 7 to 1 | Easiest to Maneuver | 6 to 1 | Showers amp | Cleanest Showers | 2 to 1 | |||||||||||||
| Restrooms | Cleanest Restrooms | 2 to 1 | |||||||||||||||||
| Showers amp | Cleanest Showers | 2 to 1 | Area | Driver Preferencefor TA and Petro vsNext Closest TruckStop Brand | Restaurants | Best Overall Food | 4 to 1 | ||||||||||||
| Restrooms | Best Shower Amenities | 3 to 1 | Showers amp | Cleanest Showers | 2 to 1 | Friendliest Staff | 4 to 1 | ||||||||||||
| Cleanest Restrooms | 2 to 1 | Restrooms | Best Shower Amenities | 3 to 1 | Healthiest Menu | 3 to 1 | |||||||||||||
| Best Shower Ventilation | 2 to 1 | Cleanest Restrooms | 2 to 1 | Best Coffee | 2 to 1 | ||||||||||||||
| Shortest Shower Wait Time | 3 to 1 | Restaurants | Best Overall Experience | 5 to 1 | Best Breakfast | 4 to 1 | |||||||||||||
| Restaurants | Best Overall Experience | 8 to 1 | Best Overall Food | 6 to 1 | Best Buffet | 5 to 1 | |||||||||||||
| Best Overall Food | 7 to 1 | Healthiest Menus | 5 to 1 | Stores | Best Travel Store | 4 to 1 | |||||||||||||
| Healthiest Menus | 5 to 1 | Best Coffee | 2 to 1 | Best Trucker Merchandise | 4 to 1 | ||||||||||||||
| Best Coffee | 2 to 1 | Best Breakfast | 4 to 1 | Truck Repair amp | Best Overall | 4 to 1 | |||||||||||||
| Best Breakfast | 6 to 1 | Best Buffets | 11 to 1 | Maintenance | Most Competent Technicians | 6 to 1 | |||||||||||||
| Best Buffets | 12 to 1 | Stores | Best Travel Stores | 4 to 1 | Best Roadside Assistance | 2 to 1 | |||||||||||||
| Stores | Best Travel Stores | 3 to 1 | Best Trucker Merchandise | 4 to 1 | Most Complete Interstate Services | 5 to 1 | |||||||||||||
| Best Trucker Merchandise | 4 to 1 | Best Electronic Merchandise | 3 to 1 | Best New Tire Source | 2 to 1 | ||||||||||||||
| Best Electronic Merchandise | 2 to 1 | Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Rewards | Best Driver Rewards Program | 2 to 1 | ||||||||||||
| Truck Repair amp | Best Overall Maintenance Shops | 4 to 1 | Maintenance | Most Complete Services | 7 to 1 | Miscellaneous | Best Smart Phone Application | 2 to 1 | |||||||||||
| Maintenance | Most Complete Services | 8 to 1 | Most Competent Technicians | 5 to 1 | |||||||||||||||
| Most Competent Technicians | 5 to 1 | ||||||||||||||||||
| Best Roadside Assistance | 4 to 1 | ||||||||||||||||||
| Best Warranty | 8 to 1 | Best Roadside Assistance | 4 to 1 | ||||||||||||||||
| Widest Selection and Inventory of Parts | 12 to 1 | Best Warranty | 8 to 1 | ||||||||||||||||
| Most Skilled and Best Equipped for New Truck Technologies | 7 to 1 | Widest Selection of Parts Inventory | 9 to 1 | ||||||||||||||||
| Best DPF Maintenance and Cleaning | 6 to 1 | Most Skilled and Best Equipped for New Truck Technologies | 6 to 1 | ||||||||||||||||
| Best Tire Assortment | 2 to 1 | ||||||||||||||||||
| Driver Comforts | Best Fitness Facilities | 9 to 1 | Driver Comforts | Best Fitness Facilities | 8 to 1 | ||||||||||||||
| Best Laundry Facilities | 4 to 1 | Best Laundry Facilities | 4 to 1 | ||||||||||||||||
| Best Driver LoungesMovie Rooms | 5 to 1 | Best Driver LoungesMovie Rooms | 3 to 1 | ||||||||||||||||
| Community Outreach | Best in Giving Back to Trucking | 3 to 1 | Community Outreach | Best in Giving Back to Trucking | 3 to 1 |
11
SITE EXPANSIONT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA intends to selectively franchise acquire or develop smaller format TA Express travel centers to complement TArsquos full service network
TA intends to selectively franchise acquire or develop full service travel centers where demand exists in its network
TA intends to provide a larger number of stopping points for customers in 2019
TArsquos goal is to add twenty sites to its network in 2019 primarily through franchising
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
12
TRUCK SERVICENEW SOLUTIONS NEW CUSTOMERS
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is investing in truck service to (1) meet the expanding needs of TArsquos traditional customers as they participate in long haul and LTL deliveries and
(2) to expand the universe of customers TA serves
TRADITIONAL CUSTOMERS SOLUTIONS FOR CLASS 8 TRUCKS
AT TERMINALS AND TRAILER YARDS
TRADITIONAL CUSTOMERS EXPAND CUSTOMER COVERAGE TO INCLUDE
CLASS 4-7 TRUCKS
NONTRADITIONAL CUSTOMERS RETAILERSrsquo PRIVATE FOR-HIRE FLEETS AND SMALL-TO-MEDIUM
BUSINESSES WITH CLASS 4-7 TRUCKS
TA Truck Service Commercial Tire Network Tech OnSITE and RoadSquad provide traditional and nontraditional customers with a single source nationwide solution for tires quality parts maintenance and repair services without limitation to where or when the service is performed
In the first quarter 2019
Tire unit sales increased 38 versus the same quarter last year
RoadSquad work orders increased by 34 versus the same quarter last year
Tech OnSite work orders increased 83 versus the same quarter last year
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
13
TRUCK SERVICE TECH ONSITE COMMERCIAL T IRE NETWORK amp ROADSQUAD
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
Provide brands and capabilities of an independent tire dealer at customer locations
Services include multiple tire and retread brands location deliveries casing management program
Service Locations
Extend maintenance repair and inspection solutions beyond TArsquos truck bays with TA vehicles going to the customer
Services include truck amp trailer maintenance ELD installations trailer rebranding trailer repairs GPS installation DOT
inspection and certifications
Provide emergency service call center support and roadside repair service 247365
Services include roadside truck repair call center tire amp repair shift support and maintenance centralization
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
14
CUSTOMER PROFILEST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
36MIL ARE CLASS 8 TRUCKS
Of which
~ 1 MIL ARE LONG HAUL TRUCKS
31 MIL COMMERCIAL TRUCKS
Of which
A company responsible for thousands of utility trucks utilize terminals across the country to service their boom and lift equipment They are pleased to meet a coast to coast provider that can perform traditional chassis work Altec also needs help debranding and inspecting vehicles
being turned in from leasing programs
Combining services like fuel large full service travel centers roadside emergency repair and call center support so a fleet can devote resources to its core
business
C U S T O M E R
C U S T O M E R
C U S T O M E R
A large retailer with a growing fleet of tractors and trailers requires mobile maintenance and roadside assistance in addition to in-bay services to
ensure its logistics operations run smoothly
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
15
FOCUS ON CUSTOMER SERVICET R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T A rsquo s U L T R A O N E L O Y A L T Y P R O G R A M I S U N I Q U E
-Drivers can earn points more quickly based on fuel volume from the previous month
-Drivers have two ways to earn rewards which provides them with more flexibility in their reward redemptions
TA unveiled an improved UltraONE customer loyalty program in January that rewards professional drivers for their business and loyalty in redefined ways
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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image2png
image3png
image4png
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
16
R E S E R V E I T
Optimize Reserve It Parking at truck stops
RETAIL SERVICES amp RESTAURANTST R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
TA is focused optimizing retail services pursuing strategies to attract more restaurant customers and controlling restaurant operating costs
F U L L S E R V I C E R E S T A U R A N T S
Replace Casual Dining Restaurant Brand with better known Consumer Brands
Optimize Operating Hours and Labor Costs
Replace Casual Dining Restaurant Brand with better known Consumer Quick Service
Restaurant Brand
Q U I C K S E R V I C E R E S T A U R A N T S
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
17
COSTSPENDING CONTROLT R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
C O N T R O L C O S T S a n d M A N A G E S P E N D I N G 2 0 1 9
Rent Expense-Rent Renegotiation with landlord Hospitality Properties Trust (HPT)
Site level Operating Expense- IT Implementation to help reduce costs in restaurants
-Site level labor efficienciesExpenditures
-Estimate sustaining capital amounts of ~$30 million-Overall net capital expenditure amounts of ~$100 million
While TA positions itself to compete in a broader market the company is focused on controlling costs and managing spending
The combination of TArsquos site expansion nonfuel customer service and costs savings initiatives should lead to a much improved Net Income and Adjusted EBITDA result in 2019 compared to 2018
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
18
JANUARY 2019 TRANSACTION W ITH HPT
T R A V E L C E N T E R S O F A M E R I C A Q 1 2 0 1 9
T R A N S A C T I O N R E S U L T S I N R E N T S A V I N G S O F $ 4 3 1 M I L L I O N
In January TA purchased 20 travel centers from HPT for $3082 million -TA previously operated the travel centers which are located in 15 states -TA continues to lease 179 properties under its five leases with HPT
TArsquos aggregate annual minimum rent due to HPT was reduced by $431 million and the term of each lease was extended-The aggregate annual minimum rent due under TArsquos five leases with HPT was reduced to $2439 million -TA and HPT extended the term of each lease by three years (2029-2035)
TA will repay its $150 million deferred rent obligation to HPT at a discounted amount of $705 million-The $705 million of deferred rent will be paid to HPT in 16 equal quarterly installments beginning on April 1 2019 This obligation previously had been payable in five installments at staggered due dates between June 2024 and December 2030
The lease amendments will increase the potential percentage rent payable by TA to HPT beginning in 2020 by an amount equal to 05 of the excess of nonfuel revenues at each leased site over the nonfuel revenues for 2019
TA used proceeds from the sale of its standalone convenience store portfolio to acquire properties and amend leases with landlord HPT
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
19
Exhibits
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
20
EXHIBIT A
2019 2018($ in thousands except per share data)Revenues Fuel 983141$ 986345$ Nonfuel 440874 423875 Rent and royalties from franchisees 3277 4110 Total revenues 1427292 1414330
Gross margin Fuel 74747 82897 Nonfuel 272606 262464 Rent and royalties from franchisees 3277 4110 Total gross margin 350630 349471
Site level operating expense 232720 223012 Selling general amp administrative expense 37110 36494 Real estate rent expense 66413 70236 Depreciation and amortization expense 24759 20546
Loss from continuing operations (12729)$ (6027)$
Loss from discontinued operations net of taxes -$ (4051)$ Net loss attributable to common shareholders (12747)$ (10112)$ Net loss per common share from continuing operations attributable to common shareholders (032)$ (015)$
Consolidated Statements of Operations
Three Months Ended March 31
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| December 31 | ||||||||||||||||
| ($ in thousands) | 2018 | 2017 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (5922) | (20710) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | (1051) | 6791 | ||||||||||||||
| (Loss) from continuing operations | (6973) | (13919) | ||||||||||||||
| Less Benefit for income taxes | (861) | (3813) | ||||||||||||||
| Add Depreciation and amortization | 21103 | 22504 | ||||||||||||||
| Add Interest expense net | 7040 | 7278 | ||||||||||||||
| EBITDA | $ | 20309 | $ | 12050 | ||||||||||||
| Add Costs of HPT transaction(1) | 364 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1089 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 567 | ||||||||||||||
| Adjusted EBITDA | $ | 20673 | $ | 13706 | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Nonfuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Nonfuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties from franchisees | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative expense | 37110 | 36494 | |||||||||||||||||||
| Real estate rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization expense | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net loss attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net loss per common share from continuing operations attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
21
EXHIBIT B
($ in thousands) 2019 2018
Net loss $ (12729) (10078) Less Benefit for income taxes (5267) (3663) Add Depreciation and amortization expense 24759 20546 Add Interest expense net 7050 7580
EBITDA $ 13813 $ 14385 Add Costs of HPT transactions(1) 458 - Add Executive officer retirement agreement expenses(2) - 1780 Add Comdata legal expenses(3) - 78 Less Loyalty award expiration(4) (2911) - Add Loss from discontinued operations net of taxes - 4051 Less Federal biodiesel blenders tax credit(5) - (23251)
Adjusted EBITDA $ 11360 $ (2957)
Calculation of EBITDA amp Adjusted EBITDA
Calculation of Adjusted EBITDA
Three Months Ended March 31
1 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the three months ended March 31 2019 TA incurred $05 million of expenses associated with theamendments of the leases
2 As part of TAs retirement agreements with a certain former officer TA agreed to accelerate the vesting of previously granted share awards and make a cash payment This acceleration and cash paymentresulted in additional compensation expense of $18 million for the three months ended March 31 2018
3 During the three months ended March 31 2018 TAincurred $01 million of legal fees in its litigation with Comdata Inc4 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional
revenue during the three months ended March 31 20195 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February
2018 This amount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
22
EXHIBIT C
1 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additionalrevenue during the three months ended March 31 2019
2 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February2018 This amount was collected during the remainder of 2018
TravelCenters Same Site Operating Data
Three Months Ended March 31
(in thousands) 2019 2018Fuel volume 460086 451081 Nonfuel revenues 434227$ 422718$
Fuel gross margin 74153 82156 Nonfuel gross margin 268325 261519 Total gross margin 342478$ 343675$
Site level operating expenses 228621 221910 Site level gross margin in excess of site level operating expenses 113857$ 121765$
Less Loyalty award expiration(1) (2812) - Less Federal biodiesel blenders tax credit(2) - (23234) Adjusted site level gross margin in excess of site level operating expenses 111045$ 98531$
Exhibit A
Exhibit B
Exhibit C
Exhibit D
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23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Current assets of discontinued operations | - 0 | - 0 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Current HPT Leases liabilities | - 0 | 42109 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current operating lease liabilities | 93981 | - 0 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Noncurrent HPT Leases liabilities | - 0 | 353756 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent operating lease liabilities | 1918377 | - 0 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| at March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Less Loyalty award expiration(1) | (2812) | - 0 | |||||||||
| Less Federal biodiesel blenders tax credit(2) | - 0 | (23234) | |||||||||
| Adjusted site level gross margin in excess of site level operating expenses | $ 111045 | $ 98531 | 127 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
23
EXHIBIT D
Note As a result of adopting ASC 842 on January 1 2019 operating lease assets of $17859 million and total operating lease liabilities of $19970 million were recognized in TArsquos consolidated balance sheet TArecognized an adjustment to its beginning accumulated deficit totaling $862 million
($ in thousands)AssetsCash and Cash equivalents 24749$ 314387$ Accounts receivable net 138561 97449 Inventory 194168 196721 Other current assets 29290 35119 Total current assets 386768 643676
Property and equipment net 883960 628537 Goodwill and intangible assets net 47252 48146 Operating lease assets 1827690 - Other noncurrent assets 98741 121749 Total assets 3244411$ 1442108$
Liabilities and Shareholders EquityAccounts payable 189023$ 120914$ Other current liabilities 145573 125668 Current lease liabilities 93981 42109 Total current liabilities 428577 288691
Long term debt net 320748 320528 Other noncurrent liabilities 52033 28741 Noncurrent lease liabilities 1918377 353756 Total liabilities 2719735 991716
Shareholders equity (40398 and 40402 common shares outstanding 524676 450392 as of March 31 2019 and December 31 2018 respectively)Total liabilities and shareholders equity 3244411$ 1442108$
March 31 2019
December 31 2018
Consolidated Balance Sheet
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
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24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| March 31 2019 | December 31 2018 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 24749 | $ 314387 | ||||||||||||||
| Accounts receivable net | 138561 | 97449 | ||||||||||||||
| Inventory | 194168 | 196721 | ||||||||||||||
| Other current assets | 29290 | 35119 | ||||||||||||||
| Total current assets | 386768 | 643676 | ||||||||||||||
| Property and equipment net | 883960 | 628537 | ||||||||||||||
| Goodwill and intangible assets net | 47252 | 48146 | ||||||||||||||
| Operating lease assets | 1827690 | - 0 | ||||||||||||||
| Other noncurrent assets | 98741 | 121749 | ||||||||||||||
| Total assets | $ 3244411 | $ 1442108 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 189023 | $ 120914 | ||||||||||||||
| Other current liabilities | 145573 | 125668 | ||||||||||||||
| Current lease liabilities | 93981 | 42109 | ||||||||||||||
| Total current liabilities | 428577 | 288691 | ||||||||||||||
| Long term debt net | 320748 | 320528 | ||||||||||||||
| Other noncurrent liabilities | 52033 | 28741 | ||||||||||||||
| Noncurrent lease liabilities | 1918377 | 353756 | ||||||||||||||
| Total liabilities | 2719735 | 991716 | ||||||||||||||
| Shareholders equity (40398 and 40402 common shares outstanding | 524676 | 450392 | ||||||||||||||
| as of March 31 2019 and December 31 2018 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 3244411 | $ 1442108 | ||||||||||||||
| TravelCenters Same Site Operating Data First Quarter 2019 | |||||||||||
| Three Months Ended | |||||||||||
| March 31 | change | ||||||||||
| (in thousands) | 2019 | 2018 | year over year | ||||||||
| Fuel Volume | 460086 | 451081 | 20 | ||||||||
| Nonfuel Revenues | $ 434227 | $ 422718 | 27 | ||||||||
| Fuel gross margin | 74153 | 82156 | -97 | ||||||||
| Nonfuel gross margin | 268325 | 261519 | 26 | ||||||||
| Total gross margin | $ 342478 | $ 343675 | -03 | ||||||||
| Site level operating expenses | 228621 | 221910 | 30 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 113857 | $ 121765 | -65 | ||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | |||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | |||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | |||||||||
| Less Loyalty income(4) | (2911) | ||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | ||||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 117226 | $ 100372 | 168 | ||||||||
| Consolidated Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net (loss) Income | $ | (12729) | (10078) | |||||||||||||
| Less (Income) loss from discontinued operations net of taxes | - 0 | (4051) | ||||||||||||||
| (Loss) from continuing operations | (12729) | (6027) | ||||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 18436 | ||||||||||||
| Add Costs of HPT transaction(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty income(4) | (2911) | |||||||||||||||
| Less Federal biodiesel tax credit(5) | (23251) | |||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
24
EXHIBIT E
($ in thousands) As Reported Adjustments(1) Pro Forma As Reported Adjustments(1) Pro FormaTotal revenues 6232999$ -$ 6232999$ 6245961$ -$ 6245961$
Total cost of sales 4786953 - 4786953 4798756 - 4798756
Site level operating expense 914730 - 914730 924438 - 924438 Selling general amp administrative expense 137945 - 137945 138561 - 138561 Real estate rent expense 283476 (43148) 240328 279653 (34400) 245253 Depreciation and amortization expense 83179 16184 99363 87392 12903 100295
Loss from continuing operations (2773) 20304 17531 (9475) 16187 6712 Loss from discontinued operations net of taxes (117631) 20304 (97327) (113580) 16187 (97393) Net loss (120404) 20304 (79796) (123055) 16187 (90681)
Less Benefit for income taxes (1574) 6660 5086 (3178) 5310 2132 Add Depreciation and amortization expense 83179 16184 99363 87392 12903 100295 Add Interest expense net 29003 - 29003 28473 - 28473
EBITDA (9796) 43148 53656 (10368) 34400 40219 Add Costs of HPT transactions(2) 364 - 364 822 - 822 Add Executive officer retirement agreement expenses(3) 3571 - 3571 1791 - 1791 Add Comdata legal expenses(4) (9967) - (9967) (10045) - (10045) Less Loyalty award expiration(5) - - - (2911) - (2911) Add Loss from discontinued operations net of taxes 117631 - 117631 113580 - 113580 Less Federal biodiesel blenders tax credit(6) (23251) - (23251) - - -
Adjusted EBITDA 78552$ 43148$ 142004$ 92869$ 34400$ 143456$
Year ended December 31 2018 LTM March 31 2019
Pro Forma Statements of Operations
1 The pro forma adjustments for the twelve months ended December 31 2018 and March 31 2019 include the aggregate effects of the transactions contemplated by the Transaction Agreements TA entered on January 162019 including among other things TAs purchase from HPT of 20 travel centers historically leased from HPT and a reduction of TAs rent payable to HPT These pro forma adjustments assume the transaction occurred onJanuary 1 2018 and include (1) reduction of annual minimum rent of $43148 TA will realize pursuant to the Transaction Agreements if all 20 properties are purchased and (2) additional depreciation of $16184 related tothe assets TA is acquiring as a result of purchasing these travel centers The net effect of the pro forma adjustments is tax affected using TAs statutory income tax rate of 247
2 In January 2019 TA entered transaction agreements pursuant to which it amended its leases with HPT During the twelve months ended December 31 2018 and March 31 2019 TA incurred $04 million and $08 millionrespectively of expenses associated with the amendments of the leases
3 As part of TAs retirement agreements with certain former officers TA agreed to accelerate the vesting of previously granted share awards and make a cash payment These accelerations and cash payment resulted inadditional compensation expense of 36 million and $18 million for the twelve months ended December 31 2018 and March 31 2019 respectively
4 For the twelve months December 31 2018 TA incurred $01 million of legal fees in its litigation with Comdata Inc On Apri l 9 2018 the Court entered its final order and judgment or the Order Pursuant to the OrderComdata was required to among other things reimburse TA for attorneys fees and costs together with interest in the amount of $107 million which TA collected in April 2018 As a result TA recognized a $101million reduction in selling general and administrative expenses for the twelve months ended December 31 2018 and March 31 2019
5 During the three months ended March 31 2019 TA introduced a new customer loyalty program UltraONE 20 As a result of introducing the new customer loyalty program TA recognized $29 million additional revenueduring the twelve months ended March 31 2019
6 On February 8 2018 the US government retroactively reinstated the 2017 federal biodiesel blendersrsquo tax credit TAs recovery as a result of this tax credit was $233 million and was recognized in February 2018 Thisamount was collected during the remainder of 2018
Exhibit A
Exhibit B
Exhibit C
Exhibit D
B-S
Exhibit E
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25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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| Pro Forma Statements of Operations | ||||||||||||||
| Year ended December 31 2018 | LTM March 31 2019 | |||||||||||||
| ($ in thousands) | As Reported | Adjustments(1) | Pro Forma | As Reported | Adjustments(1) | Pro Forma | ||||||||
| Total revenues | $ 6232999 | $ - 0 | $ 6232999 | $ 6245961 | $ - 0 | $ 6245961 | ||||||||
| Total cost of sales | 4786953 | - 0 | 4786953 | 4798756 | - 0 | 4798756 | ||||||||
| Site level operating expense | 914730 | - 0 | 914730 | 924438 | - 0 | 924438 | ||||||||
| Selling general amp administrative expense | 137945 | - 0 | 137945 | 138561 | - 0 | 138561 | ||||||||
| Real estate rent expense | 283476 | (43148) | 240328 | 279653 | (34400) | 245253 | ||||||||
| Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Loss from continuing operations | (2773) | 20304 | 17531 | (9475) | 16187 | 6712 | ||||||||
| Loss from discontinued operations net of taxes | (117631) | 20304 | (97327) | (113580) | 16187 | (97393) | ||||||||
| Net loss | (120404) | 20304 | (79796) | (123055) | 16187 | (90681) | ||||||||
| Less Benefit for income taxes | (1574) | 6660 | 5086 | (3178) | 5310 | 2132 | ||||||||
| Add Depreciation and amortization expense | 83179 | 16184 | 99363 | 87392 | 12903 | 100295 | ||||||||
| Add Interest expense net | 29003 | - 0 | 29003 | 28473 | - 0 | 28473 | ||||||||
| EBITDA | (9796) | 43148 | 53656 | (10368) | 34400 | 40219 | ||||||||
| Add Costs of HPT transactions(2) | 364 | - 0 | 364 | 822 | - 0 | 822 | ||||||||
| Add Executive officer retirement agreement expenses(3) | 3571 | - 0 | 3571 | 1791 | - 0 | 1791 | ||||||||
| Add Comdata legal expenses(4) | (9967) | - 0 | (9967) | (10045) | - 0 | (10045) | ||||||||
| Less Loyalty award expiration(5) | - 0 | - 0 | - 0 | (2911) | - 0 | (2911) | ||||||||
| Add Loss from discontinued operations net of taxes | 117631 | - 0 | 117631 | 113580 | - 0 | 113580 | ||||||||
| Less Federal biodiesel blenders tax credit(6) | (23251) | - 0 | (23251) | - 0 | - 0 | - 0 | ||||||||
| Adjusted EBITDA | $ 78552 | $ 43148 | $ 142004 | $ 92869 | $ 34400 | $ 143456 | ||||||||
| Cash and cash equivalents | 85519 | 35526 | |||
| Accounts receivable net | 168990 | 125501 | |||
| Inventory | 198021 | 186867 | |||
| Other current assets | 27050 | 27015 | |||
| Total current assets | 815278 | 398518 | |||
| Property and equipment net | 606219 | 613196 | |||
| Goodwill and intangible assets net | 48681 | 50351 | |||
| Other noncurrent assets | 121761 | 89955 | |||
| Total assets | 1591939 | 1618132 | |||
| Liabilities and Shareholders Equity | |||||
| Current liabilities | |||||
| Accounts payable | 204178 | 155581 | |||
| Current HPT Leases liabilities | 42122 | 41389 | |||
| Other current liabilities | 173353 | 128017 | |||
| Total current liabilities | 431289 | 327298 | |||
| Long term debt net | 320303 | 319634 | |||
| Noncurrent HPT Leases liabilities | 357560 | 368782 | |||
| Other noncurrent liabilities | 26774 | 27376 | |||
| Total liabilities | 1135926 | 1051637 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | 456013 | 566495 | |||
| at September 30 2018 and December 31 2017 respectively) | |||||
| Total liabilities and shareholders equity | 1591939 | 1618132 | |||
| Shareholders equity (39768 and 39984 common shares outstanding | |||||
| at September 30 2018 and December 31 2017 respectively) |
| Consolidated Balance Sheet | ||||||||||||||||
| December 31 2018 | December 31 2017 | |||||||||||||||
| ($ in thousands) | ||||||||||||||||
| Assets | ||||||||||||||||
| Cash and Cash equivalents | $ 314387 | $ 35526 | ||||||||||||||
| Accounts receivable net | 97449 | 125501 | ||||||||||||||
| Inventory | 196721 | 186867 | ||||||||||||||
| Other current assets | 35119 | 27015 | ||||||||||||||
| Current assets of discontinued operations | - 0 | 23609 | ||||||||||||||
| Total current assets | 643676 | 398518 | ||||||||||||||
| Property and equipment net | 628537 | 613196 | ||||||||||||||
| Goodwill and intangible assets net | 48146 | 50351 | ||||||||||||||
| Other noncurrent assets | 121749 | 89955 | ||||||||||||||
| Noncurrent assets of discontinued operations | - 0 | 466112 | ||||||||||||||
| Total assets | $ 1442108 | $ 1618132 | ||||||||||||||
| Liabilities and Shareholders Equity | ||||||||||||||||
| Accounts payable | $ 120914 | $ 155581 | ||||||||||||||
| Current HPT Leases liabilities | 42109 | 41389 | ||||||||||||||
| Other current liabilities | 125668 | 128017 | ||||||||||||||
| Current liabilities of discontinued operations | - 0 | 2311 | ||||||||||||||
| Total current liabilities | 288691 | 327298 | ||||||||||||||
| Long term debt net | 320528 | 319634 | ||||||||||||||
| Noncurrent HPT Leases liabilities | 353756 | 368782 | ||||||||||||||
| Other noncurrent liabilities | 28741 | 27376 | ||||||||||||||
| Noncurrent liabilities of discontinued operations | - 0 | 8547 | ||||||||||||||
| Total liabilities | 991716 | 1051637 | ||||||||||||||
| Shareholders equity (40402 and 39984 common shares outstanding | 450392 | 566495 | ||||||||||||||
| at December 31 2018 and December 31 2017 respectively) | ||||||||||||||||
| Total liabilities and shareholders equity | $ 1442108 | $ 1618132 | ||||||||||||||
| TravelCenters Same Site Operating Data Fourth Quarter 2018 | |||||||||||
| Three Months Ended | |||||||||||
| December 31 | change | ||||||||||
| (in thousands) | 2018 | 2017 | year over year | ||||||||
| Fuel Volume | 460033 | 460503 | -01 | ||||||||
| Nonfuel Revenues | $ 1058645 | $ 954422 | 109 | ||||||||
| Fuel gross margin | 85393 | 67691 | 262 | ||||||||
| Nonfuel gross margin | 266360 | 257702 | 34 | ||||||||
| Total gross margin | $ 351753 | $ 325393 | 81 | ||||||||
| Site level operating expenses | 225319 | 211038 | 68 | ||||||||
| Site level gross margin in excess of site level operating expenses | $ 126434 | $ 114355 | 106 | ||||||||
| Add Executive officer retirement agreement expenses(1) | - 0 | 1089 | |||||||||
| Add Comdata legal expenses(2) | - 0 | 567 | |||||||||
| Adjusted site level gross margin in excess of adjusted site level operating expenses | $ 126434 | $ 116011 | 90 | ||||||||
| Calculation of Adjusted EBITDA | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| March 31 | ||||||||||||||||
| ($ in thousands) | 2019 | 2018 | ||||||||||||||
| Calculation of EBITDA amp Adjusted EBITDA | ||||||||||||||||
| Net loss | $ | (12729) | (10078) | |||||||||||||
| Less Benefit for income taxes | (5267) | (3663) | ||||||||||||||
| Add Depreciation and amortization expense | 24759 | 20546 | ||||||||||||||
| Add Interest expense net | 7050 | 7580 | ||||||||||||||
| EBITDA | $ | 13813 | $ | 14385 | ||||||||||||
| Add Costs of HPT transactions(1) | 458 | - 0 | ||||||||||||||
| Add Executive officer retirement agreement expenses(2) | - 0 | 1780 | ||||||||||||||
| Add Comdata legal expenses(3) | - 0 | 78 | ||||||||||||||
| Less Loyalty award expiration(4) | (2911) | - 0 | ||||||||||||||
| Add Loss from discontinued operations net of taxes | - 0 | 4051 | ||||||||||||||
| Less Federal biodiesel blenders tax credit(5) | - 0 | (23251) | ||||||||||||||
| Adjusted EBITDA | $ | 11360 | $ | (2957) | ||||||||||||
| Cost of Goods Sold | |||||||||||||||||||||
| Consolidated Statements of Operations | Fuel | 908394 | 903448 | ||||||||||||||||||
| Non fuel | 168268 | 161411 | |||||||||||||||||||
| Three Months Ended | Total Costs of Goods Sold | 1076662 | 1064859 | ||||||||||||||||||
| March 31 | |||||||||||||||||||||
| 2019 | 2018 | ||||||||||||||||||||
| ($ in thousands except per share data) | |||||||||||||||||||||
| Revenues | |||||||||||||||||||||
| Fuel | $ 983141 | $ 986345 | |||||||||||||||||||
| Non fuel | 440874 | 423875 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total revenues | 1427292 | 1414330 | |||||||||||||||||||
| Gross margin | |||||||||||||||||||||
| Fuel | 74747 | 82897 | |||||||||||||||||||
| Non fuel | 272606 | 262464 | |||||||||||||||||||
| Rent and royalties | 3277 | 4110 | |||||||||||||||||||
| Total gross margin | 350630 | 349471 | |||||||||||||||||||
| Site level operating expense | 232720 | 223012 | |||||||||||||||||||
| Selling general amp administrative | 37110 | 36494 | |||||||||||||||||||
| Rent expense | 66413 | 70236 | |||||||||||||||||||
| Depreciation and amortization | 24759 | 20546 | |||||||||||||||||||
| Loss from continuing operations | $ (12729) | $ (6027) | |||||||||||||||||||
| Loss from discontinued operations net of taxes | $ - 0 | $ (4051) | |||||||||||||||||||
| Net (loss) attributable to common shareholders | $ (12747) | $ (10112) | |||||||||||||||||||
| Net (loss) per common share attributable to common shareholders | $ (032) | $ (015) | |||||||||||||||||||
25
T R AVEL C EN TER S OF AMER IC AQ1 2 0 1 9
Refuel Replenish Refresh
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