TravelCenters Reports Mixed 4Q, Full-Year Results
TravelCenters of America reported mixed earnings for the fourth quarter and 2017 as it experienced lower gross fuel margin on lower volume, among other factors, while nonfuel revenue rose in both periods.
The net loss for the quarter ended Dec. 31 was $20.6 million, or 52 cents per share, on revenue of $1.6 billion. That compared with a net loss of $6.5 million, or 17 cents, on revenue of $1.4 billion for the 2016 fourth quarter.
The primary reasons for the increased loss in 2017 were a $6.4 million income tax expense and liabilities regarding the corporate income tax rate of 21% established by the Tax Cuts and Jobs Act. The previous tax rate was 35%. The company also logged a $5.4 million impairment charge and a $3.3 million decrease in fuel gross margin on lower volume and the elimination of biodiesel-related tax credits, according to the Westlake, Ohio-based company.
The company said the biodiesel-related tax credits have been reinstated since February.
Offsetting the losses were a $7.6 million increase in nonfuel gross margin at sites acquired and developed since the beginning of the 2016 fourth quarter and changes in the mix of products and services sold.
For the year, net income was $9.3 million, or 23 cents, on revenue of $6 billion. That compared with a net loss of $2 million, or 5 cents, on revenue of $5.5 billion.
The company has 223 travel centers under the Petro and TA brands in 43 states and Canada, plus 229 convenience stores and 11 stand-alone restaurants.
