Business CommentaryTA’s net income of $20.7 million for the third quarter of 2011 reflected an increase of $16.2 million as compared to the 2010 third quarter. Net income increased primarily due to increases in fuel and nonfuel sales and margin levels, and from a reduction in rent and interest expenses as a result of the January 2011 lease amendment with Hospitality Properties Trust, or HPT. TA’s results also reflected improvement in EBITDAR, which increased by $3.3 million in the 2011 third quarter over the 2010 third quarter. TA’s fuel sales volume and fuel gross margin per gallon increased by 4.8% and 4.2%, respectively, in the 2011 third quarter as compared to the 2010 third quarter, resulting in total fuel gross margin that was $6.7 million higher in the 2011 third quarter than the 2010 third quarter. Nonfuel sales for the 2011 third quarter increased 10.2% over the 2010 third quarter largely due to increased customer spending in TA’s travel centers. The following table presents the quarterly changes in fuel sales volumes on a percentage basis compared to the same quarter of the prior year.
|Change in Total Fuel Sales Volume (1)||2011 compared to 2010||2010 compared to 2009||2009 compared to 2008||2008 compared to 2007|
|First quarter ended March 31||-0.5%||8.9%||-17.3%||22.7%|
|Second quarter ended June 30||4.3%||6.4%||-9.7%||0.2%|
|Third quarter ended September 30||4.8%||4.8%||-2.5%||-19.0%|
|Fourth quarter ended December 31||1.6%||3.3%||-15.4%|
|(1)||Includes volumes sold by TA’s predecessor prior to January 31, 2007, and excludes volumes sold at Petro sites prior to the May 30, 2007 acquisition by TA.|