TravelCenters of America LLC Announces First Quarter 2013 Results

  TravelCenters of America LLC Announces First Quarter 2013 Results

Business Wire

WESTLAKE, Ohio -- May 7, 2013

TravelCenters of America LLC (NYSE: TA) today announced financial results for
the quarter ended March 31, 2013.

At March 31, 2013, TA’s business included 244 travel centers in 41 U.S. states
and in Canada, including 171 travel centers operating under the “TravelCenters
of America”, “TA” or related brand names, and 73 travel centers operating
under the “Petro Stopping Centers”, or “Petro” brand. TA’s results were:

                                   Three Months Ended

                                    March 31,                                
                                    2013                    2012
                                    (in thousands, except per share amounts)
                                                                             
Revenues                            $    1,957,351           $   1,994,869
Net loss                            $    (12,139     )       $   (14,185     )
                                                                             
Net loss per share:
Basic and diluted                   $    (0.41       )       $   (0.49       )
                                                                             
Supplemental Data:
Total fuel sales volume (gallons)        495,713                 512,701
Total fuel revenues                 $    1,625,107           $   1,683,193
Fuel gross margin                   $    76,928              $   68,446
                                                                             
Total nonfuel sales                 $    329,194             $   308,154
Nonfuel gross margin                $    183,829             $   171,384
Nonfuel gross margin percentage          55.8        %           55.6        %
                                                                             
EBITDAR^(1)                         $    56,968              $   49,706


(1) A reconciliation that shows the calculation of earnings before interest,
taxes, depreciation, amortization and rent, or EBITDAR, from net loss
determined in accordance with U.S. generally accepted accounting principles,
or GAAP, appears in the supplemental data below.

Business Commentary

TA’s net loss of $12.1 million for the first quarter of 2013 reflected an
improvement of $2.0 million as compared to the net loss for the first quarter
of 2012. TA’s results for the first quarter of 2013 included improvement in
fuel gross margin, nonfuel revenues, nonfuel gross margin and EBITDAR. EBITDAR
increased by $7.3 million, or 14.6%, over the 2012 first quarter to $57.0
million. Despite a 3.3% decline in gallons sold, total gross margin increased
$20.5 million, or 8.4%, while site level operating expenses increased only
$13.8 million, or 8.1% in the 2013 first quarter as compared to the 2012 first
quarter. Approximately 61% of the 3.3% decline in fuel gallons sold was
attributable to TA’s ceasing to supply fuel on a wholesale basis to certain of
its franchisees during 2013. The improvement in fuel gross margin was impacted
by the retroactive reinstatement to January 1, 2012, of a biodiesel blender’s
credit of $3.3 million, which became effective during the first quarter of
2013 as a result of the American Taxpayer Relief Act of 2012, which became law
on January 2, 2013. The improvements in nonfuel revenues and gross margin in
the first quarter of 2013 resulted, in large part, from the travel centers
acquired during 2012 and 2013, increased fuel gross margin per gallon and
increased customer spending for nonfuel products and services at TA’s travel
centers. TA noted that its revenues are usually lowest in the first quarter of
the year when movement of freight by truck and motorist travel are typically
at their lowest levels of the year. While TA’s revenues are modestly seasonal,
the quarterly variations in TA’s operating results may reflect greater
seasonal differences because rent and certain other costs do not vary
seasonally.

Investment Activity

During the quarter ended March 31, 2013, TA purchased two travel centers (one
of which was previously one of TA’s franchisee operated travel centers) for an
aggregate of $9.4 million and made capital investments of $32.5 million,
including $7.5 million to improve travel centers TA purchased during 2011
through 2013. In April and May 2013, TA acquired two travel centers for $9.2
million. TA has an agreement to acquire an additional travel center for $4.0
million. TA expects to purchase this travel center during the second quarter
of 2013, but this purchase is subject to conditions and may not occur. TA
currently intends to continue its efforts to selectively acquire additional
properties.

Capital Activity

On January 15, 2013, TA sold $110 million of 8.25% Senior Notes due 2028 in a
public offering for net proceeds of approximately $105.1 million. During the
2013 first quarter, TA sold to Hospitality Properties Trust, or HPT, $22.7
million of improvements to sites leased from HPT.

Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013
first quarter results of operations and recent activities.

“During the first quarter of 2013, TA was again able to increase EBITDAR and
improve net income per share over the prior year. During the 2013 first
quarter, our 17,000 employees overcame the challenges of severe weather,
particularly on the east coast during February, one less day in February due
to leap year in 2012, and the Easter holiday falling in March 2013 versus in
April 2012, all by executing our business plan and, as always, taking care of
our customers.”

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 for the travel centers that were operated by TA
continuously since the beginning of the earliest applicable period presented.
A presentation of EBITDAR, and a reconciliation that shows the calculation of
EBITDAR from net loss, 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
March 31, 2013. Following management’s remarks, there will be a question and
answer period.

The conference call telephone number is (800) 230-1951. Participants calling
from outside the United States and Canada should dial (612) 332-0342. 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 290597.

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 transcription, recording and retransmission in any
way of TA’s first quarter conference call is strictly prohibited without the
prior written consent of TA. The Company’s website is not incorporated as part
of this press release.

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 42 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 TA’S NET LOSS DECREASED AND THAT TA’S FUEL
    GROSS MARGIN, NONFUEL SALES AND NONFUEL GROSS MARGIN LEVELS INCREASED. 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;
  *THIS PRESS RELEASE STATES THAT TA’S REVENUES ARE USUALLY LOWEST IN THE
    FIRST QUARTER OF THE YEAR AND THAT BECAUSE RENT AND CERTAIN OTHER COSTS DO
    NOT VARY SEASONALLY TA’S OPERATING RESULTS MAY REFLECT GREATER SEASONAL
    DIFFERENCES. AN IMPLICATION OF THIS STATEMENT MAY BE THAT TA’S FINANCIAL
    RESULTS WILL IMPROVE LATER IN THE CALENDAR YEAR. AS NOTED ABOVE, THERE ARE
    MANY FACTORS IN ADDITION TO THE SEASONALITY OF TA’S BUSINESS WHICH MAY
    IMPACT TA’S FINANCIAL RESULTS. ACCORDINGLY, THERE CAN BE NO ASSURANCE THAT
    TA’S FINANCIAL RESULTS WILL IMPROVE LATER IN THE CALENDAR YEAR;
  *THIS PRESS RELEASE REFERENCES SEVERAL TRAVEL CENTER PURCHASES THAT TA HAS
    COMPLETED OR AGREED TO COMPLETE DURING 2013 AND STATES THAT TA EXPECTS A
    PURCHASE TO BE COMPLETED DURING THE SECOND QUARTER OF 2013. THE
    IMPLICATIONS OF THESE STATEMENTS MAY BE THAT TA WILL BE ABLE TO COMPLETE
    THE REFERENCED PURCHASE AND TA WILL BE ABLE TO OPERATE ITS PURCHASED
    LOCATIONS PROFITABLY. MANY OF THE TRAVEL CENTERS TA HAS ACQUIRED PRODUCED
    OPERATING RESULTS WHICH MAY HAVE CAUSED THE PRIOR OWNERS TO EXIT THESE
    BUSINESSES AND TA’S ABILITY TO OPERATE THESE LOCATIONS PROFITABLY DEPENDS
    UPON MANY FACTORS, INCLUDING TA’S ABILITY TO INTEGRATE NEW OPERATIONS INTO
    ITS EXISTING OPERATIONS AND SOME FACTORS WHICH ARE BEYOND TA’S CONTROL
    SUCH AS THE LEVEL OF DEMAND FOR TA’S GOODS AND SERVICES ARISING FROM THE
    U.S. ECONOMY GENERALLY. ALSO, THE PENDING ACQUISITIONS ARE SUBJECT TO
    CONDITIONS, WHICH MAY NOT BE SATISFIED AND COULD RESULT IN THOSE
    ACQUISITIONS NOT OCCURRING OR BEING DELAYED, OR COULD RESULT IN THE TERMS
    OF THE ACQUISITIONS CHANGING. FURTHER, TA MAY NOT SUCCEED IN IDENTIFYING
    AND/OR ACQUIRING OTHER PROPERTIES; AND
  *THIS PRESS RELEASE STATES THAT DURING THE 2013 FIRST QUARTER TA MADE
    CAPITAL INVESTMENTS OF $32.5 MILLION FOR IMPROVEMENTS TO EXISTING AND
    ACQUIRED TRAVEL CENTERS, AND SOLD TO HPT $22.7 MILLION OF IMPROVEMENTS TO
    TRAVEL CENTERS LEASED FROM HPT. TA’S REGULAR OPERATIONS REQUIRE LARGE
    AMOUNTS OF CAPITAL INVESTMENT TO MAINTAIN THE COMPETITIVENESS OF TA’S
    LOCATIONS AND HPT IS NOT OBLIGATED TO PURCHASE IMPROVEMENTS TO LEASED
    TRAVEL CENTERS FROM TA. THERE CAN BE NO ASSURANCE THAT TA WILL HAVE
    SUFFICIENT WORKING CAPITAL OR CASH LIQUIDITY TO FUND FUTURE CAPITAL
    INVESTMENTS.

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;
  *ACQUISITIONS MAY SUBJECT TA TO ADDITIONAL OR GREATER RISKS THAN TA’S
    CONTINUING OPERATIONS, INCLUDING THE ASSUMPTION OF UNKNOWN LIABILITIES;
  *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 TA’S HISTORICAL OPERATING LOSSES, THE
    AVAILABILITY AND THE TERMS OF ANY CREDIT TA MAY BE ABLE TO OBTAIN ARE
    UNCERTAIN;
  *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;
  *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, AFFILIATES INSURANCE
    COMPANY, OR AIC, AND THEIR AFFILIATED AND RELATED PERSONS AND ENTITIES,
    ACTUAL AND POTENTIAL CONFLICTS OF INTEREST WITH TA’S MANAGING DIRECTORS,
    HPT, RMR, AIC 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 AND BUSINESS LICENSES 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 YEARS ENDED DECEMBER 31, 2011 AND
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 PERIODIC REPORTS, INCLUDING TA’S
ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2012, FILED WITH
THE U.S. SECURITIES AND EXCHANGE COMMISSION, OR “SEC”, AND TA’S QUARTERLY
REPORT ON FORM 10-Q FOR THE THREE MONTHS ENDED MARCH 31, 2013, TO BE FILED
WITH THE SEC, UNDER “WARNING CONCERNING FORWARD LOOKING STATEMENTS,” AND “RISK
FACTORS” AND ELSEWHERE IN THOSE REPORTS. COPIES OF THOSE REPORTS ARE OR 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 March 31,
                                                2013            2012
Revenues:
Fuel                                            $  1,625,107     $ 1,683,193
Nonfuel                                            329,194         308,154
Rent and royalties                                3,050          3,522
Total revenues                                     1,957,351       1,994,869
                                                                             
Cost of goods sold (excluding depreciation):
Fuel                                               1,548,179       1,614,747
Nonfuel                                           145,365        136,770
Total cost of goods sold (excluding                1,693,544       1,751,517
depreciation)
                                                                             
Operating expenses:
Site level operating                               183,933         170,137
Selling, general & administrative                  23,227          23,167
Real estate rent                                   51,884          49,498
Depreciation and amortization                     13,223         11,859
Total operating expenses                          272,267        254,661
                                                                             
Loss from operations                               (8,460    )     (11,309   )
                                                                             
Income (loss) from equity investees                436             (200      )
Acquisition costs                                  (115      )     (142      )
Interest income                                    235             222
Interest expense                                  (4,065    )    (2,512    )
Loss before income taxes                           (11,969   )     (13,941   )
Provision for income taxes                        170            244
Net loss                                        $  (12,139   )   $ (14,185   )
                                                                             
Net loss per share:
Basic and diluted                               $  (0.41     )   $ (0.49     )
                                                                             

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended March 31, 2013, to be filed with the
U.S. Securities and Exchange Commission.


TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)

                                              March 31,    December 31,
                                               2013          2012
Assets
Current assets:
Cash and cash equivalents                    $ 135,964     $ 35,189
Accounts receivable, net                       168,114       106,273
Inventories                                    188,503       191,006
Other current assets                          60,981       61,020
Total current assets                           553,562       393,488
                                                             
Property and equipment, net                    576,492       576,512
Goodwill and intangible assets, net            22,364        20,041
Other noncurrent assets                       32,613       28,240
Total assets                                 $ 1,185,031   $ 1,018,281
                                                             
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                             $ 194,349     $ 143,605
Current HPT Leases Liabilities                 29,612        28,354
Other current liabilities                     130,615      111,168
Total current liabilities                      354,576       283,127
                                                             
Noncurrent HPT Leases liabilities              348,153       351,135
Senior Notes due 2028                          110,000       —
Other noncurrent liabilities                  30,369       30,585
Total liabilities                              843,098       664,847
                                                             
Shareholders’ equity                          341,933      353,434
Total liabilities and shareholders’ equity   $ 1,185,031   $ 1,018,281
                                                             

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended March 31, 2013, to be filed with the
U.S. Securities and Exchange Commission.


TRAVELCENTERS OF AMERICA LLC
CONSOLIDATED SUPPLEMENTAL DATA
(in thousands)

                                    Three Months Ended March 31,
                                     2013             2012
Calculation of EBITDAR:^(1)
Net loss                             $  (12,139  )     $  (14,185 )
Add: income taxes                       170               244
Add: depreciation and amortization      13,223            11,859
Deduct: interest income                 (235     )        (222    )
Add: interest expense^(2)               4,065             2,512
Add: real estate rent expense^(3)      51,884           49,498
EBITDAR                              $  56,968         $  49,706


^(1) EBITDAR is a not a GAAP financial measure. 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 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 (loss), income (loss) from
continuing operations, operating profit, cash flow from operations or any
other operating or liquidity performance measure prescribed by U.S. generally
accepted accounting principles, or GAAP.

^(2) Interest expense included the following:

                                                
                                                  Three Months Ended March 31,
                                                  2013              2012
Interest related to TA’s Senior Notes and         $   2,373          $  533
Credit Facility
HPT rent classified as interest                   $   1,741             1,810
Amortization of deferred financing costs              154               87
Capitalized interest                                  (325    )         —
Other                                                122              82
                                                  $   4,065          $  2,512
                                                                        

^(3) 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 $55,457 and $52,693 during the three month
periods ended March 31, 2013 and 2012, respectively, while the total rent
amounts expensed during the quarters ended March 31, 2013 and 2012, were
$51,884 and $49,498, 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 and the deferred gain realized on the sale of assets that
are leased back. A reconciliation of these amounts is as follows.

                                              
                                                Three Months Ended March 31,
                                                2013             2012
                                                                             
Cash payments to HPT for rent                   $   52,850        $  50,299
Other cash rental payments                         2,607           2,394
Total cash payments under real property             55,457           52,693
leases
Adjustments for:
Accrued estimated percentage rent not yet           666              729
paid
Noncash straight line rent accrual – HPT            (241    )        35
Noncash straight line rent accrual – other          21               109
Amortization of sale/leaseback financing            (509    )        (549    )
obligation
Portion of rent payments classified as              (1,741  )        (1,810  )
interest expense
Amortization of deferred tenant improvements        (1,692  )        (1,692  )
allowance
Amortization of deferred gain on                   (77     )       (17     )
sale/leaseback transactions
Total amount expensed as rent                   $   51,884        $  49,498
                                                                             

                    SUPPLEMENTAL SAME SITE OPERATING DATA

The following table presents operating data for all of the travel centers in
operation on March 31, 2013, that were operated by TA continuously since the
beginning of the earliest applicable period 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 March 31,
                                                              Change
                              2013           2012          
                                                              Fav/(Unfav)
Number of company operated      191             191           —
travel centers
                                                                          
Fuel sales volume (gallons)     462,485         485,560       (4.8)       %
                                                                          
Fuel revenues                 $ 1,516,901     $ 1,595,746     (4.9)       %
Fuel gross margin             $ 73,601        $ 67,654        8.8         %
                                                                          
Nonfuel revenues              $ 312,860       $ 307,588       1.7         %
Nonfuel gross margin          $ 174,714       $ 171,137       2.1         %
Nonfuel gross margin            55.8      %     55.6      %   20          b.p.
percentage
                                                                          
Total gross margin            $ 248,315       $ 238,791       4.0         %
Site level operating          $ 173,139       $ 167,488       (3.4)       %
expenses
Site level operating
expenses as a percentage of     55.3      %     54.5      %   (80)        b.p.
nonfuel revenues
Site level gross margin in
excess of site level          $ 75,176        $ 71,303        5.4         %
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
 
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