TravelCenters of America LLC Announces Third Quarter 2012 Results

  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