TravelCenters of America LLC Announces Third Quarter 2012 Results Business Wire WESTLAKE, Ohio -- November 06, 2012 TravelCenters of America LLC (NYSE MKT: TA) today announced financial results for the three and nine months ended September 30, 2012. At September 30, 2012, TA’s business included 242 sites, 171 of which were operated under the “TravelCenters of America” or “TA” brand names and 71 of which were operated under the “Petro Stopping Centers” or “Petro” brand name. Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 (in thousands, except per share amounts) Revenues $ 2,034,153 $ 2,087,285 $ 6,070,529 $ 5,964,356 Net income $ 18,990 $ 20,793 $ 34,657 $ 26,049 Net income per share: Basic and diluted $ 0.66 $ 0.74 $ 1.20 $ 1.15 Supplemental Data: Total fuel sales 511,373 543,959 1,552,998 1,574,394 volume (gallons) Total fuel $ 1,666,810 $ 1,734,621 $ 5,039,010 $ 4,989,927 revenues Fuel gross margin $ 84,980 $ 81,322 $ 249,563 $ 227,984 Total nonfuel $ 363,402 $ 348,790 $ 1,020,299 $ 963,676 revenues Nonfuel gross $ 199,385 $ 196,010 $ 565,098 $ 548,328 margin EBITDAR ^(1) $ 83,604 $ 83,069 $ 227,425 $ 210,530 A reconciliation that shows the calculation of earnings before (1) interest, taxes, depreciation, amortization and rent, or EBITDAR, from net income determined in accordance with generally accepted accounting principles, or GAAP, appears in the supplemental data below. Business Commentary TA’s net income of $19.0 million for the third quarter of 2012 decreased by $1.8 million as compared to the net income in the 2011 third quarter. TA’s results included improvement in fuel margin, nonfuel revenues, nonfuel gross margin and EBITDAR, which increased by $0.5 million, or 0.6%, over the 2011 third quarter to $83.6 million in the 2012 third quarter, despite a decline in fuel sales volume. Nonfuel revenues for the 2012 third quarter increased $14.6 million, or 4.2%, above the 2011 third quarter. Fuel gross margin increased $3.7 million, or 4.5%, nonfuel gross margin increased $3.4 million, or 1.7%, and total gross margin increased $7.1 million, or 2.5%, each in the 2012 third quarter as compared to the 2011 third quarter. The improvements in nonfuel revenues and gross margin in the third quarter of 2012 resulted, in large part, from the travel centers acquired or opened since July 1, 2011, increased fuel gross margin per gallon and increased customer spending for nonfuel products and services in TA’s travel centers. Capital Investment During the nine months ended September 30, 2012, TA made capital investments of $94.2 million for improvements to existing travel centers and $17.4 million to improve the travel centers TA acquired during 2011 and 2012. During the nine months ended September 30, 2012, TA purchased nine travel centers and acquired the business of a sublease tenant franchisee for an aggregate of $41.2 million. During the nine months ended September 30, 2012, TA sold to Hospitality Properties Trust, or HPT, $48.3 million of improvements at sites leased from HPT, which resulted in increased rent due to HPT under the lease terms. Supplemental Data In 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 the travel centers that were operated by TA continuously since the beginning of the earliest applicable 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: Later today, 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 September 30, 2012. Following management’s remarks, there will be a question and answer period. The conference call telephone number is (800) 230-1059. Participants calling from outside the United States and Canada should dial (612) 234-9960. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available for about a week after the call. To hear the replay, dial (320) 365-3844. The replay pass code is 260116. A live audio webcast of the conference call will also be available in a listen only mode on our web site at www.tatravelcenters.com. To access the webcast, participants should visit our web site about five minutes before the call. The archived webcast will be available for replay on our web site for about one week after the call. The recording and retransmission in any way of TA’s third quarter conference call is strictly prohibited without the prior written consent of TA. About TravelCenters of America LLC: TA’s travel centers operate under the “TravelCenters of America”, “TA”, “Petro Stopping Centers” and “Petro” brand names and offer diesel and gasoline fueling, restaurants, truck repair facilities, stores and other services. TA’s nationwide business includes travel centers located in 41 U.S. states and in Canada. WARNING CONCERNING FORWARD LOOKING STATEMENTS THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORMACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER TA USES WORDS SUCH AS ‘‘BELIEVE’’, ‘‘EXPECT’’, ‘‘ANTICIPATE’’, ‘‘INTEND’’, ‘‘PLAN’’, ‘‘ESTIMATE’’ OR SIMILAR EXPRESSIONS, TA IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON TA’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAYNOT OCCUR. ACTUAL RESULTS MAYDIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. AMONG OTHERS, THE FORWARD LOOKING STATEMENTS WHICH APPEAR IN THIS PRESS RELEASE THAT MAY NOT OCCUR INCLUDE: *THIS PRESS RELEASE STATES THAT THE IMPROVEMENT IN TA’S NONFUEL REVENUES AND GROSS MARGIN RESULTED IN LARGE PART FROM THE TRAVEL CENTERS ACQUIRED OR OPENED SINCE JULY 1, 2011, INCREASED FUEL MARGIN PER GALLON AND INCREASED CUSTOMER SPENDING FOR NONFUEL PRODUCTS AND SERVICES IN TA’S TRAVEL CENTERS. AN IMPLICATION OF THESE STATEMENTS MAY BE THAT TA WILL BE ABLE TO OPERATE PROFITABLY IN THE FUTURE. IN FACT, THERE ARE MANY FACTORS WHICH WILL IMPACT TA’ S FUTURE OPERATIONS THAT MAY CAUSE TA TO OPERATE UNPROFITABLY IN ANNUAL AND/OR QUARTERLY PERIODS IN ADDITION TO THOSE STATED ITEMS, INCLUDING SOME FACTORS WHICH ARE BEYOND TA’S CONTROL SUCH AS SEASONALITY, THE CONDITION OF THE U.S. ECONOMY GENERALLY, THE FUTURE DEMAND FOR TA’S GOODS AND SERVICES AND COMPETITION IN TA’S BUSINESS; AND *THIS PRESS RELEASE STATES THAT AT SEPTEMBER 30, 2012, TA HAD $101.6 MILLION OF CASH AND CASH EQUIVALENTS, THAT THERE WERE NO AMOUNTS OUTSTANDING UNDER TA’S BANK CREDIT FACILITY ON SEPTEMBER 30, 2012, AND THAT DURING THE NINE MONTHS ENDED SEPTEMBER 30, 2012, TA RECEIVED $48.3 MILLION FROM HPT FOR SALES TO HPT OF QUALIFYING IMPROVEMENTS UNDER TA’S LEASES WITH HPT. THESE STATEMENTS MAY IMPLY THAT TA HAS ABUNDANT WORKING CAPITAL AND LIQUIDITY. IN FACT, TA’S REGULAR OPERATIONS REQUIRE LARGE AMOUNTS OF WORKING CASH. AS OF SEPTEMBER 30, 2012, $58.2 MILLION OF TA’S BANK CREDIT FACILITY WAS USED TO PROVIDE LETTERS OF CREDIT TO TA’S SUPPLIERS, INSURERS AND TAXING AUTHORITIES AND TA HAS COLLATERALIZED ITS BANK FACILITY WITH SUBSTANTIALLY ALL OF TA’S CASH, ACCOUNTS RECEIVABLE, INVENTORIES, EQUIPMENT AND INTANGIBLE ASSETS. IN ADDITION, TA’S BUSINESS REQUIRES IT TO MAKE SIGNIFICANT CAPITAL EXPENDITURES TO MAINTAIN ITS COMPETITIVENESS AND HPT IS NOT OBLIGATED TO PURCHASE ANY FUTURE IMPROVEMENTS TA MAY MAKE TO ITS TRAVEL CENTERS IT LEASES FROM HPT. ACCORDINGLY, TA MAY NOT HAVE SUFFICIENT WORKING CAPITAL OR LIQUIDITY. THESE AND OTHER UNEXPECTED RESULTS MAY BE CAUSED BY VARIOUS FACTORS, SOME OF WHICH ARE BEYOND TA’S CONTROL, INCLUDING: *THE IMPACT OF CHANGES IN THE ECONOMY AND THE CAPITAL MARKETS ON TA, ITS CUSTOMERS AND ITS FRANCHISEES; *COMPLIANCE WITH, AND CHANGES TO, FEDERAL, STATE AND LOCAL LAWS AND REGULATIONS, ACCOUNTING RULES, TAX RATES AND SIMILAR MATTERS; *COMPETITION WITHIN THE TRAVEL CENTER INDUSTRY; *FUTURE FUEL PRICE INCREASES, FUEL PRICE VOLATILITY, COMPETITION OR OTHER FACTORS MAY CAUSE TA TO NEED MORE WORKING CAPITAL TO MAINTAIN ITS INVENTORIES AND CARRY ITS ACCOUNTS RECEIVABLE THAN TA NOW EXPECTS; *THE ACQUISITION OF TRAVEL CENTERS MAY SUBJECT TA TO ADDITIONAL OR GREATER RISKS THAN TA’S CONTINUING OPERATIONS, INCLUDING THE ASSUMPTION OF UNKNOWN LIABILITIES; *MOST OF TA’S TRUCKING CUSTOMERS TRANSACT BUSINESS WITH TA BY USE OF FUEL CARDS, WHICH ARE ISSUED BY THIRD PARTY FUEL CARD COMPANIES. THE FUEL CARD INDUSTRY HAS ONLY A FEW SIGNIFICANT PARTICIPANTS. FUEL CARD COMPANIES FACILITATE PAYMENTS TO TA, AND CHARGE TA FEES FOR THESE SERVICES. COMPETITION, OR LACK THEREOF, AMONG THE FUEL CARD COMPANIES MAY RESULT IN FUTURE INCREASES IN TA’S TRANSACTION FEE EXPENSES OR WORKING CAPITAL REQUIREMENTS, OR BOTH; *IN THE PAST, INCREASES IN FUEL PRICES HAVE REDUCED THE DEMAND FOR THE PRODUCTS AND SERVICES THAT TA SELLS BECAUSE HIGH FUEL PRICES MAY HAVE ENCOURAGED FUEL CONSERVATION, DIRECTED FREIGHT BUSINESS AWAY FROM TRUCKING OR OTHERWISE ADVERSELY AFFECTED THE BUSINESS OF TA’S CUSTOMERS. FUTURE INCREASES IN FUEL PRICES MAY HAVE SIMILAR AND OTHER ADVERSE EFFECTS ON TA’S BUSINESS AND SOME OF THESE PAST CONSEQUENCES MAY CONTINUE, WHICH MAY ADVERSELY AFFECT TA’S BUSINESS EVEN IF FUEL PRICES DO NOT INCREASE; *TA’S SUPPLIERS MAY BE UNWILLING OR UNABLE TO MAINTAIN TA’S CURRENT TERMS FOR PURCHASES ON CREDIT. IF TA IS UNABLE TO PURCHASE GOODS ON REASONABLE CREDIT TERMS, TA’S REQUIRED WORKING CAPITAL MAY INCREASE AND TA MAY INCUR MATERIAL LOSSES. IN TIMES OF RISING FUEL AND NONFUEL PRICES, TA’S SUPPLIERS MAY BE UNWILLING OR UNABLE TO INCREASE THE CREDIT AMOUNTS THEY EXTEND TO TA, WHICH MAY REQUIRE TA TO INCREASE ITS WORKING CAPITAL INVESTMENT. ALSO, IN LIGHT OF THE RECENT CREDIT MARKET CONDITIONS AND TA’S HISTORICAL OPERATING LOSSES, THE AVAILABILITY AND THE TERMS OF ANY CREDIT TA MAY BE ABLE TO OBTAIN ARE UNCERTAIN; *TA IS ROUTINELY INVOLVED IN LITIGATION AND OTHER LEGAL MATTERS INCIDENTAL TO THE ORDINARY COURSE OF ITS BUSINESS. DISCOVERY AND COURT DECISIONS DURING LITIGATION OFTEN HAVE UNANTICIPATED RESULTS. LITIGATION IS EXPENSIVE AND DISTRACTING TO MANAGEMENT. TA CAN PROVIDE NO ASSURANCE AS TO THE OUTCOME OF ANY OF THE LITIGATION MATTERS IN WHICH IT IS OR MAY BECOME INVOLVED; *ACTS OF TERRORISM, GEOPOLITICAL RISKS, WARS, OUTBREAKS OF SO CALLED PANDEMICS OR OTHER MANMADE OR NATURAL DISASTERS BEYOND TA’S CONTROL MAY ADVERSELY AFFECT TA’S OPERATING RESULTS; *ALTHOUGH TA BELIEVES THAT IT BENEFITS FROM ITS CONTINUING RELATIONSHIPS WITH HPT, REIT MANAGEMENT & RESEARCH LLC, OR RMR, AND THEIR AFFILIATED AND RELATED PERSONS AND ENTITIES, ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH TA’S MANAGING DIRECTORS, HPT, RMR AND AFFILIATED AND RELATED PERSONS AND ENTITIES MAY PRESENT A CONTRARY PERCEPTION OR RESULT IN LITIGATION; *AS A RESULT OF CERTAIN TRADING IN TA’S SHARES DURING 2007, TA EXPERIENCED AN OWNERSHIP CHANGE AS DEFINED BY SECTION 382 OF THE INTERNAL REVENUE CODE, OR THE CODE. CONSEQUENTLY, TA IS UNABLE TO USE ITS NET OPERATING LOSS GENERATED IN 2007 TO OFFSET ANY FUTURE TAXABLE INCOME. IF TA EXPERIENCES ADDITIONAL OWNERSHIP CHANGES, AS DEFINED IN THE CODE, ITS NET OPERATING LOSSES GENERATED AFTER 2007 COULD ALSO BE SUBJECT TO USAGE LIMITATIONS; AND *TA’S LIMITED LIABILITY COMPANY AGREEMENT AND BYLAWS AND CERTAIN OF TA’S OTHER AGREEMENTS INCLUDE VARIOUS PROVISIONS WHICH MAY DETER A CHANGE OF CONTROL OF TA AND, AS A RESULT, TA’S SHAREHOLDERS MAY BE UNABLE TO REALIZE A TAKE OVER PREMIUM FOR THEIR SHARES. TA ACCUMULATED A SIGNIFICANT DEFICIT DURING THE YEARS 2007 THROUGH 2010. ALTHOUGH TA GENERATED NET INCOME FOR THE YEAR ENDED DECEMBER 31, 2011, AND THE NINE MONTHS ENDED SEPTEMBER 30, 2012, AND TA’S PLANS ARE INTENDED TO GENERATE NET INCOME IN FUTURE PERIODS, THERE CAN BE NO ASSURANCE THAT THESE PLANS WILL SUCCEED. RESULTS THAT DIFFER FROM THOSE STATED OR IMPLIED BY TA’S FORWARD LOOKING STATEMENTS MAY ALSO BE CAUSED BY VARIOUS CHANGES IN TA’S BUSINESS OR MARKET CONDITIONS, AS DESCRIBED MORE FULLY IN TA’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2011, UNDER “WARNING CONCERNING FORWARD LOOKING STATEMENTS,” AND “RISK FACTORS” AND UNDER “WARNING CONCERNING FORWARD LOOKING STATEMENTS” AND ELSEWHERE IN TA’S QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2012. COPIES OF THAT TA ANNUAL REPORT ARE AVAILABLE, AND COPIES OF THAT TA QUARTERLY REPORT WILL BE AVAILABLE, AT THE WEBSITE OF THE U.S. SECURITIES AND EXCHANGE COMMISSION: WWW.SEC.GOV. YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS. EXCEPT AS REQUIRED BY LAW, TA UNDERTAKES NO OBLIGATION TO UPDATE OR REVISE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE. TRAVELCENTERS OF AMERICA LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) Three Months Ended September 30, 2012 2011 Revenues: Fuel $ 1,666,810 $ 1,734,621 Nonfuel 363,402 348,790 Rent and royalties 3,941 3,874 Total revenues 2,034,153 2,087,285 Cost of goods sold (excluding depreciation): Fuel 1,581,830 1,653,299 Nonfuel 164,017 152,780 Total cost of goods sold (excluding 1,745,847 1,806,079 depreciation) Operating expenses: Site level operating 179,737 176,274 Selling, general & administrative 25,577 22,360 Real estate rent 49,185 48,202 Depreciation and amortization 12,874 11,770 Total operating expenses 267,373 258,606 Income from operations 20,933 22,600 Equity in income of equity investees 801 497 Acquisition costs (189 ) — Interest income 512 319 Interest expense (2,638 ) (2,364 ) Income before income taxes 19,419 21,052 Provision for income taxes 429 259 Net income $ 18,990 $ 20,793 Net income per share: Basic and diluted $ 0.66 $ 0.74 Weighted average shares outstanding: Basic and diluted ^(1) 28,810 28,053 (1) Includes unvested shares granted under our share award plan. These financial statements should be read in conjunction with TA’s Quarterly Report on Form10-Q for the quarter ended September 30, 2012, to be filed with the Securities and Exchange Commission, including the condensed consolidated financial statements and notes thereto that describe certain revisions to the financial information for the three months ended September 30, 2011, that TA determined are not material. TRAVELCENTERS OF AMERICA LLC CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) Nine Months Ended September 30, 2012 2011 Revenues: Fuel $ 5,039,010 $ 4,989,927 Nonfuel 1,020,299 963,676 Rent and royalties 11,220 10,753 Total revenues 6,070,529 5,964,356 Cost of goods sold (excluding depreciation): Fuel 4,789,447 4,761,943 Nonfuel 455,201 415,348 Total cost of goods sold (excluding 5,244,648 5,177,291 depreciation) Operating expenses: Site level operating 525,962 511,035 Selling, general & administrative 73,110 65,768 Real estate rent 148,030 143,339 Depreciation and amortization 37,138 34,399 Total operating expenses 784,240 754,541 Income from operations 41,641 32,524 Equity in income of equity investees 1,263 714 Acquisition costs (647 ) (446 ) Interest income 1,094 655 Interest expense (7,632 ) (6,688 ) Income before income taxes 35,719 26,759 Provision for income taxes 1,062 710 Net income $ 34,657 $ 26,049 Net income per share: Basic and diluted $ 1.20 $ 1.15 Weighted average shares outstanding: Basic and diluted ^(1) 28,793 22,687 (1) Includes unvested shares granted under our share award plan. These financial statements should be read in conjunction with TA’s Quarterly Report on Form10-Q for the quarter ended September 30, 2012, to be filed with the Securities and Exchange Commission, including the condensed consolidated financial statements and notes thereto that describe certain revisions to the financial information for the nine months ended September 30, 2011, that TA determined are not material. TRAVELCENTERS OF AMERICA LLC CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands) September 30, December 31, 2012 2011 Assets Current assets: Cash and cash equivalents $ 101,610 $ 118,255 Accounts receivable, net 176,782 130,672 Inventories 187,176 168,267 Other current assets 61,782 67,056 Total current assets 527,350 484,250 Property and equipment, net 555,612 479,943 Intangible assets, net 20,139 21,957 Other noncurrent assets 26,787 30,381 Total assets $ 1,129,888 $ 1,016,531 Liabilities and Shareholders’ Equity Current liabilities: Accounts payable $ 199,533 $ 149,051 Current HPT Leases liabilities 26,006 25,141 Other current liabilities 148,010 113,624 Total current liabilities 373,549 287,816 Noncurrent HPT Leases liabilities 353,814 365,085 Other noncurrent liabilities 47,456 45,029 Total liabilities 774,819 697,930 Shareholders’ equity 355,069 318,601 Total liabilities and shareholders’ $ 1,129,888 $ 1,016,531 equity These financial statements should be read in conjunction with TA’s Quarterly Report on Form10-Q for the quarter ended September 30, 2012, to be filed with the Securities and Exchange Commission. TRAVELCENTERS OF AMERICA LLC CONSOLIDATED SUPPLEMENTAL DATA (in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Calculation of EBITDAR:^(1) Net income $ 18,990 $ 20,793 $ 34,657 $ 26,049 Add: income taxes 429 259 1,062 710 Add: depreciation and 12,874 11,770 37,138 34,399 amortization Deduct: interest (512 ) (319 ) (1,094 ) (655 ) income Add: interest 2,638 2,364 7,632 6,688 expense^(2) Add: real estate rent 49,185 48,202 148,030 143,339 expense^(3) EBITDAR^(1) $ 83,604 $ 83,069 $ 227,425 $ 210,530 TA calculates EBITDAR as earnings before interest, taxes, depreciation, amortization and rent. TA believes EBITDAR is a useful indication of its operating performance and its ability to pay rent or service debt, make capital expenditures and expand its business. TA believes that EBITDAR is a meaningful disclosure that may help interested persons to better understand its financial ^(1) performance, including comparing its performance between periods and to the performance of other companies. However, EBITDAR as presented may not be comparable to similarly titled amounts calculated by other companies. This information should not be considered as an alternative to net income, income from continuing operations, operating profit, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP. ^(2) Interest expense included the following: Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 HPT rent classified as $ 1,816 $ 1,847 $ 5,436 $ 5,541 interest expense Amortization of deferred 89 72 263 214 financing costs Other 733 445 1,933 933 $ 2,638 $ 2,364 $ 7,632 $ 6,688 Real estate rent expense recognized under GAAP differs from TA’s obligation to pay cash for rent under its leases. Cash paid under real property lease agreements was $54,321 and $51,778 during the three month periods ended September 30, 2012 and 2011, respectively, while the total rent amounts expensed during the three months ended September 30, 2012 and 2011, were $49,185 and $48,202, respectively. Cash paid under lease agreements was $162,692 and $154,135 during the nine month periods ended September 30, 2012 and 2011, respectively, while the total rent amounts ^(3) expensed during the nine months ended September 30, 2012 and 2011, were $148,030 and $143,339, respectively. GAAP requires recognition of minimum lease payments payable during the lease term in equal amounts on a straight line basis over the lease term. In addition, under GAAP, a portion of the rent TA pays to HPT is classified as interest expense and a portion of the rent payments to HPT is applied to amortize a sale/leaseback financing obligation. Also, under GAAP, TA amortizes as a reduction of rent expense the deferred tenant improvement allowance that HPT paid to TA during the four years from 2007 through 2010. A reconciliation of these amounts is as follows. Three Months Ended Nine Months Ended September 30, September 30, 2012 2011 2012 2011 Cash payments to HPT $ 51,867 $ 49,313 $ 155,390 $ 146,778 for rent ^(a) Other cash rental 2,454 2,465 7,302 7,357 payments Total cash payments under real property 54,321 51,778 162,692 154,135 leases Adjustments for: Accrued estimated percentage rent not 76 — 76 — yet paid Noncash straight line (1,172 ) 408 (2,723 ) 2,644 rent accrual – HPT Noncash straight line 29 67 191 163 rent accrual – other Interest paid on deferred rent — — — (1,450 ) obligation Amortization of sale/leaseback (543 ) (512 ) (1,641 ) (1,535 ) financing obligation Portion of rent payments classified as (1,816 ) (1,847 ) (5,436 ) (5,541 ) interest expense Amortization of deferred tenant (1,692 ) (1,692 ) (5,077 ) (5,077 ) improvements allowance Amortization of deferred gain on (18 ) — (52 ) — sale/leaseback transactions Total amount expensed $ 49,185 $ 48,202 $ 148,030 $ 143,339 as rent (a) Includes the final payment of interest on TA’s deferred rent obligation made in January 2011. SUPPLEMENTAL SAME SITE OPERATING DATA The following table presents operating data for all of the travel centers in operation on September 30, 2012, that were operated by TA continuously since the beginning of the earliest applicable periods presented. This data excludes revenues and expenses that were not generated at travel centers TA operates, such as rents and royalties from franchises, and corporate level selling, general and administrative expenses. TRAVELCENTERS OF AMERICA LLC SAME SITE OPERATING DATA((1)) (in thousands, except for number of travel centers and percentage amounts) Three Months Ended September 30, Nine Months Ended September 30, 2012 2011 Change 2012 2011 Change Number of company operated 192 192 — 184 184 — travel centers Total fuel sales 481,316 516,585 -6.8 % 1,424,568 1,476,869 -3.5 % volume (gallons) Total fuel $ 1,570,767 $ 1,650,111 -4.8 % $ 4,630,438 $ 4,687,655 -1.2 % revenues Total fuel $ 82,459 $ 80,506 2.4 % $ 239,045 $ 222,412 7.5 % gross margin Total nonfuel $ 354,843 $ 348,508 1.8 % $ 984,222 $ 949,751 3.6 % revenues Total nonfuel $ 194,806 $ 195,849 -0.5 % $ 545,796 $ 540,724 0.9 % gross margin Total gross $ 277,265 $ 276,355 0.3 % $ 784,841 $ 763,136 2.8 % margin Site level $ 174,068 $ 173,270 0.5 % $ 498,079 $ 497,398 0.1 % operating expenses Net site level gross margin in excess of $ 103,197 $ 103,085 0.1 % $ 286,762 $ 265,738 7.9 % site level operating expense (1) Excludes two travel centers TA operates that are owned by a joint venture and travel centers operated by TA’s franchisees. Contact: TravelCenters of America LLC Timothy A. Bonang, 617-796-8251 Vice President of Investor Relations or Carlynn Finn, 617-796-8251 Senior Manager of Investor Relations www.tatravelcenters.com
TravelCenters of America LLC Announces Third Quarter 2012 Results
Press spacebar to pause and continue. Press esc to stop.