This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TravelCenters Of America LLC's CEO Discusses Q1 2012 Results - Earnings Call Transcript

For the 2012 first quarter, we realized same-site growth in nonfuel revenues of 5.9% and in nonfuel gross margin of 2%. These improvements were achieved despite the modestly negative impact on our truck repair and service business of mild weather this winter.

We also managed site level operating expenses down by 30 basis points on a same-site basis. Our fuel sales volume on a same-site basis was slightly down versus the prior year quarter, and we believe this is at least partially a result of the dispensers that were out of service at times during the quarter, as we continued to install new diesel and diesel exhaust fluid equipment throughout our network. We expect that these dispenser projects will persist at certain sites throughout the remainder of the year and that by year end, we will have on island both diesel exhaust fluid available at all of our travel centers. Despite the slightly lower volume on a same-site basis, fuel gross margin increased by 9% over the 2011 first quarter.

As you may be aware, our results are typically weakest in the first quarter of the year and are strongest during the second and third quarters. For this reason, we're not at all surprised of the net loss for the first quarter and we don't think anyone who studies our business should be either.

We continue to expect to post net income for the full year of 2012 that will exceed the net income generated for 2011. During the 2012 first quarter, TA again opportunistically took advantage of the distressed market conditions affecting specialized real estate by buying or agreeing to buy 6 travel centers for about $26 million. On March 7, we invested $5 million to purchase 1 travel center in Carnesville, Georgia and branded this travel center as a Petro Stopping Center. On April 30, we invested $7.1 million to purchase a travel center in Scranton, Pennsylvania that had been previously operated as a Petro Stopping Center by a former franchisee. During the first quarter of 2012, we agreed to acquire 4 travel centers in Indiana for $14 million. 3 of these travel centers are currently operated as Petro Stopping Centers by our franchisee. We expect to keep them branded as Petros and to brand the 4th travel center as a TA. We expect to close on this acquisition during the third quarter of 2012.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $94.02 0.00%
FB $104.07 0.00%
GOOG $683.57 0.00%
TSLA $162.60 0.00%
YHOO $27.97 0.00%


Chart of I:DJI
DOW 16,204.97 -211.61 -1.29%
S&P 500 1,880.05 -35.40 -1.85%
NASDAQ 4,363.1440 -146.4150 -3.25%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs