TA’s EBITDAR for the third quarter of 2013 increased by approximately $4.2 million, or 5.1%, to $87.8 million, versus EBITDAR for the 2012 third quarter of $83.6 million. The increase in EBITDAR is primarily attributable to an increase in fuel gross margin per gallon, which averaged $0.176 during the 2013 third quarter versus $0.166 during the 2012 third quarter.
Net income for the third quarter of 2013 decreased approximately $3.2 million, or 16.8%, to $15.8 million ($0.53 per share), versus net income for the 2012 third quarter of $19.0 million ($0.66 per share). The decline is largely due to the increase in depreciation and amortization expense attributable to acquisitions and other capital investments TA has made during 2012 and 2013 and the related acquisition and financing costs. Since the beginning of 2011, TA has invested $216.9 million to acquire and improve 26 travel center properties. The improvements to these properties are often substantial and require a long period of time to plan, design, permit and complete, and once completed then require a period of time to produce stabilized financial results. TA estimates that the travel centers it acquires generally will reach stabilization in approximately the third year after acquisition, but the actual result can vary widely from this estimate due to many factors, some of which are outside TA’s control. From the time of their acquisition by TA, during the three, nine and twelve month periods ended September 30, 2013, these 26 properties generated gross revenues in excess of cost of goods sold and site level operating expenses of $7.6 million, $17.7 million and $19.3 million, respectively, compared to $1.6 million, $4.0 million and $5.2 million for the three, nine and twelve month periods ended September 30, 2012, respectively.
Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013 third quarter results and acquisition activity: