Capital Expenditures and Liquidity
During the six months ended June 30, 2012, TA made capital investments of $65.1 million for improvements to existing travel centers and $3.3 million to improve eight travel centers TA acquired during 2011. In March 2012 TA purchased a travel center for $5.6 million and during the three months ended June 30, 2012, TA purchased three additional travel centers for an aggregate of $12.3 million. During the six months ended June 30, 2012, TA sold to Hospitality Properties Trust, or HPT, $18.1 million of improvements at sites leased from HPT which results in increased rent due to HPT under the lease terms. During July 2012, TA completed the acquisitions of an additional five travel centers for an aggregate of $22.1 million.
At June 30, 2012, TA had approximately $129.4 million in cash and cash equivalents. TA also maintains a $200 million revolving secured bank credit facility. At June 30, 2012, no amounts were outstanding under this facility; however $67.5 million of the facility was used to support letters of credit issued in the ordinary course of TA’s business.
Supplemental DataIn addition to the historical financial results prepared in accordance with GAAP, TA furnishes supplemental data that it believes may help investors better understand TA’s business. Included in this supplemental data is same site operating data that includes operating data for all of the travel centers that were operated by TA continuously from the beginning to the end of the comparative periods presented. A presentation of EBITDAR, and a reconciliation that shows the calculation of EBITDAR from net income, the most directly comparable financial measure calculated and presented in accordance with GAAP, also appears in the supplemental data. Conference Call: On August 7, 2012, at 10:00 a.m. Eastern Time, TA will host a conference call to discuss its financial results and other activities for the three months ended June 30, 2012. Following management’s remarks, there will be a question and answer period.
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