TravelCenters of America Reports Higher Net Income, Revenue as Fuel Sales Jump
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TravelCenters of America Inc. reported net income of $1.21 million, or 15 cents per share, in the quarter ended June 30.
That compares with a net loss of $33.98 million in the second quarter of 2018, when earnings per share were $1.07.
Revenue was $1.6 billion, up 1% from $1.15 billion in the comparable quarter.
Rebholz
Andrew Rebholz, CEO of the Westlake, Ohio-based company, said weather didn’t impair business profits.
“We believe that through the first six months of 2019, our strategy to refocus our efforts on our core travel center operations have been successful, including in the second quarter, despite cooler, wetter temperatures that generally tempered demand for our truck service business,” Rebholz said in an Aug. 6 news release. “We have generated increases in both fuel sales volume and nonfuel revenues on both a consolidated and same-site basis, and the modest growth in our site level operating expenses and adjusted selling, general and administrative expenses are in line with expectations given our future growth plans.”
TA officials said fuel revenue decreased by $31.8 million, or 2.8%, in the 2019 second quarter compared with the 2018 second quarter, primarily due to a decrease in market prices for fuel during the quarter. That partially was offset by the increase in fuel sales volume.
Fuel gross margin for the 2019 second quarter increased by $2.4 million, or 3.3%, compared with the 2018 second quarter. TA officials said diesel fuel gross margin essentially was flat for the 2019 second quarter compared with the 2018 second quarter, due to a slightly lower gross margin per gallon, which largely was offset by a 4.6% increase in diesel fuel sales volume.
Nonfuel revenue increased by $4.6 million, or 1%, in the 2019 second quarter compared with the 2018 second quarter.
TA’s business includes travel centers located in 43 states and in Canada, stand-alone truck service facilities located in two states and stand-alone restaurants located in 13 states.
