TravelCenters of America LLC Announces Second Quarter 2013 Results

  TravelCenters of America LLC Announces Second Quarter 2013 Results

Business Wire

WESTLAKE, Ohio -- August 6, 2013

TravelCenters of America LLC (NYSE: TA) today announced financial results for
the three and six months ended June 30, 2013.

At June 30, 2013, TA’s business included 247 locations in 42 U.S. states and
in Canada operating under the “TravelCenters of America”, “TA”, “Petro
Stopping Centers”, or “Petro” travel center brand names and other brand names.
TA’s results were:

               Three Months Ended               Six Months Ended

                 June 30,                           June 30,
                 2013            2012              2013            2012
                 (in thousands, except per share amounts)
                                                    
Revenues         $ 2,018,754     $ 2,041,507       $ 3,976,105       $ 4,036,376
Net income       $ 15,984         $ 29,852          $ 3,845           $ 15,667
                                                                                  
Net income
per share:
Basic and        $ 0.54           $ 1.04            $ 0.13            $ 0.54
diluted
                                                                                  
Supplemental
Data:
Retail fuel
sales volume
(excluding         515,337          505,729           1,005,148         995,517
wholesale)
gallons
Total fuel       $ 1,635,400      $ 1,689,007       $ 3,260,507       $ 3,372,200
revenues
Fuel gross       $ 89,812         $ 96,137          $ 166,740         $ 164,583
margin
                                                                                  
Total
nonfuel          $ 380,041        $ 348,743         $ 709,235         $ 656,897
sales
Nonfuel          $ 208,103        $ 194,329         $ 391,932         $ 365,713
gross margin
Nonfuel
gross margin       54.8      %      55.7      %       55.3      %       55.7      %
percentage
                                                                                  
EBITDAR^(1)      $ 86,618         $ 94,115          $ 143,586         $ 143,821
                                                                                  

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

Business Commentary

TA’s EBITDAR for the second quarter of 2013 decreased by approximately $7.5
million, or 8.0%, to $86.6 million, versus EBITDAR for the 2012 second quarter
of $94.1 million. The decline is largely attributable to a decline in fuel
gross margin per gallon, which averaged $0.17 during the 2013 second quarter
versus $0.19 during the 2012 second quarter. The impact of the decline in
margin per gallon was only partially offset by a 1.9% increase in fuel sales
volume, nonfuel activities and EBITDAR attributable to new sites.

Net income for the second quarter of 2013 decreased approximately $13.9
million, or 46.5%, to $16.0 million ($0.54 per share), versus net income for
the 2012 second quarter of $29.9 million ($1.04 per share). The decline is
largely attributable to the decline in EBITDAR noted above and increases in
depreciation and amortization and the cost of financing attributable largely
to the capital projects and acquisitions made by TA during 2012 and 2013; the
operations at many of the 20 sites acquired during those periods have not yet
reached fully-stabilized levels currently expected by TA.

Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013
second quarter results:

“The 2013 second quarter results are reflective of softer industry conditions
than experienced in the 2012 second quarter. Despite that softness, I remain
excited about the future opportunities I expect our leadership position in our
industry and our capital investments will provide.”

Investment Activity

During the six months ended June 30, 2013, TA purchased six locations (two of
which were previously franchisee operated locations) for an aggregate of $27.9
million and made capital investments of $84.7 million, including $21.9 million
to improve locations TA purchased during 2011 through 2013.

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 half, TA sold to Hospitality Properties Trust, or HPT, $45.2
million of improvements to sites leased from HPT for increased rent, pursuant
to the terms of the lease agreements.

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 locations 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 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
June 30, 2013. Following management’s remarks, there will be a question and
answer period.

The conference call telephone number is (877) 260-8898. Participants calling
from outside the United States and Canada should dial (612) 332-0718. 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 296759.

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 second 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 primarily operates and franchises travel centers under the “TravelCenters
of America”, “TA”, “Petro Stopping Centers” and “Petro” brand names and offers
diesel and gasoline fueling, restaurants, truck repair facilities, stores and
other services. TA’s nationwide business includes locations 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 THE OPERATIONS AT MANY OF TA’S RECENTLY
    ACQUIRED SITES HAVE NOT YET REACHED FULLY-STABILIZED LEVELS CURRENTLY
    EXPECTED BY TA. THE IMPLICATIONS OF THIS STATEMENT ARE THAT OPERATIONS AT
    RECENTLY ACQUIRED SITES WILL IMPROVE TO A LEVEL THAT WILL RESULT IN
    INCREASES IN EBITDAR AND NET INCOME IN THE FUTURE. IN FACT, THERE ARE MANY
    FACTORS WHICH WILL IMPACT TA’ S FUTURE OPERATIONS THAT MAY CAUSE TA TO
    OPERATE LESS PROFITABLY OR 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 REFERENCES LOCATIONS THAT TA HAS PURCHASED DURING 2013.
    THE IMPLICATION OF THIS STATEMENT MAY BE THAT TA WILL BE ABLE TO OPERATE
    ITS PURCHASED LOCATIONS PROFITABLY. MANY OF THE LOCATIONS 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; AND
  *THIS PRESS RELEASE STATES THAT DURING THE FIRST HALF OF 2013 TA MADE
    CAPITAL INVESTMENTS OF $84.7 MILLION FOR IMPROVEMENTS TO EXISTING AND
    ACQUIRED LOCATIONS, AND SOLD TO HPT $45.2 MILLION OF IMPROVEMENTS TO
    LOCATIONS 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 LOCATIONS FROM
    TA. FURTHER, TA IS OBLIGATED TO PAY INCREASED RENT AS A RESULT OF CAPITAL
    IMPROVEMENTS IT SELLS TO HPT PURSUANT TO THE TERMS OF THE LEASES WITH HPT.
    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 JUNE 30, 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 June 30,
                                                 2013           2012
Revenues:
Fuel                                             $ 1,635,400     $ 1,689,007
Nonfuel                                            380,041         348,743
Rent and royalties                                3,313          3,757
Total revenues                                     2,018,754       2,041,507
                                                                             
Cost of goods sold (excluding depreciation):
Fuel                                               1,545,588       1,592,870
Nonfuel                                           171,938        154,414
Total cost of goods sold (excluding                1,717,526       1,747,284
depreciation)
                                                                             
Operating expenses:
Site level operating                               190,646         176,088
Selling, general & administrative                  24,482          24,366
Real estate rent                                   52,104          49,347
Depreciation and amortization                     14,025         12,405
Total operating expenses                          281,257        262,206
                                                                             
Income from operations                             19,971          32,017
                                                                             
Income from equity investees                       723             662
Acquisition costs                                  (205      )     (316      )
Interest income                                    307             360
Interest expense                                  (4,430    )    (2,482    )
Income before income taxes                         16,366          30,241
Provision for income taxes                        382            389
Net income                                       $ 15,984        $ 29,852
                                                                             
Net income per share:
Basic and diluted                                $ 0.54          $ 1.04
                                                                             

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended June 30, 2013, to be filed with the
U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
                                            
                                               Six Months Ended June 30,
                                               2013            2012
Revenues:
Fuel                                           $ 3,260,507       $ 3,372,200
Nonfuel                                          709,235           656,897
Rent and royalties                              6,363            7,279
Total revenues                                   3,976,105         4,036,376
                                                                             
Cost of goods sold (excluding
depreciation):
Fuel                                             3,093,767         3,207,617
Nonfuel                                         317,303          291,184
Total cost of goods sold (excluding              3,411,070         3,498,801
depreciation)
                                                                             
Operating expenses:
Site level operating                             374,579           346,225
Selling, general & administrative                47,709            47,533
Real estate rent                                 103,988           98,845
Depreciation and amortization                   27,248           24,264
Total operating expenses                        553,524          516,867
                                                                             
Income from operations                           11,511            20,708
                                                                             
Income from equity investees                     1,159             462
Acquisition costs                                (320      )       (458      )
Interest income                                  542               582
Interest expense                                (8,495    )      (4,994    )
Income before income taxes                       4,397             16,300
Provision for income taxes                      552              633
Net income                                     $ 3,845           $ 15,667
                                                                             
Net income per share:
Basic and diluted                              $ 0.13            $ 0.54

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended June 30, 2013, to be filed with the
U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
                                                          
                                               June 30,        December 31,
                                               2013            2012
Assets
Current assets:
Cash and cash equivalents                      $ 135,091       $  35,189
Accounts receivable, net                         179,084          106,273
Inventories                                      192,404          191,006
Other current assets                            56,075          61,020
Total current assets                             562,654          393,488
                                                                  
Property and equipment, net                      609,444          576,512
Goodwill and intangible assets, net              24,571           20,041
Other noncurrent assets                         33,414          28,240
Total assets                                   $ 1,230,083     $  1,018,281
                                                                  
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                               $ 209,387       $  143,605
Current HPT Leases Liabilities                   31,557           28,354
Other current liabilities                       143,078         111,168
Total current liabilities                        384,022          283,127
                                                                  
Noncurrent HPT Leases liabilities                344,750          351,135
Senior Notes due 2028                            110,000          —
Other noncurrent liabilities                    32,579          30,585
Total liabilities                                871,351          664,847
                                                                  
Shareholders’ equity                            358,732         353,434
Total liabilities and shareholders’ equity     $ 1,230,083     $  1,018,281
                                                                  

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended June 30, 2013, to be filed with the
U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA LLC
CONSOLIDATED SUPPLEMENTAL DATA
(in thousands)
                                              
                     Three Months Ended            Six Months Ended
                     June 30,                      June 30,
                     2013         2012           2013          2012
Calculation of
EBITDAR:^(1)
Net income           $ 15,984       $ 29,852       $ 3,845         $ 15,667
Add: income            382            389            552             633
taxes
Add:
depreciation and       14,025         12,405         27,248          24,264
amortization
Deduct: interest       (307   )       (360   )       (542    )       (582    )
income
Add: interest          4,430          2,482          8,495           4,994
expense^(2)
Add: real estate      52,104        49,347        103,988        98,845
rent expense^(3)
EBITDAR              $ 86,618       $ 94,115       $ 143,586       $ 143,821
                                                                             

^(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, income 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      Six Months Ended
                               June 30,                  June 30,
                               2013        2012        2013        2012
Interest related to TA’s
Senior Notes and Credit        $ 2,742       $ 533       $ 5,115       $ 1,071
Facility
HPT rent classified as         $ 1,743         1,810       3,484         3,620
interest
Amortization of deferred         170           88          325           175
financing costs
Capitalized interest             (316  )       —           (641  )       —
Other                           91           51         212          128
                               $ 4,430       $ 2,482     $ 8,495       $ 4,994
                                                                         

^(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 $56,064 and $54,166 during the three month
periods ended June 30, 2013 and 2012, respectively, while the total rent
amounts expensed during the quarters ended June 30, 2013 and 2012, were
$52,104 and $49,347, respectively. Cash paid under lease agreements was
$112,323 and $107,744 during the six month periods ended June 30, 2013 and
2012, respectively, while the total rent amounts expensed during the six
months ended June 30, 2013 and 2012, were $103,988 and $98,845, 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 TA leased back. A reconciliation of
these amounts is as follows.

                  Three Months Ended June      Six Months Ended June 30,
                    30,
                    2013          2012           2013          2012
                                                                             
Cash payments       $  53,473       $ 51,713       $ 107,125       $ 102,897
to HPT for rent
Other cash            2,591         2,453         5,198          4,847
rental payments
Total cash
payments under         56,064         54,166         112,323         107,744
real property
leases
Adjustments
for:
Accrued
estimated              584            208            584             208
percentage rent
not yet paid
Noncash
straight line          (523   )       (1,013 )       (900    )       (1,134  )
rent accrual –
HPT
Noncash
straight line          3              54             24              163
rent accrual –
other
Amortization of
sale/leaseback         (512   )       (549   )       (1,022  )       (1,098  )
financing
obligation
Portion of rent
payments
classified as          (1,743 )       (1,810 )       (3,484  )       (3,620  )
interest
expense
Amortization of
deferred tenant        (1,692 )       (1,692 )       (3,384  )       (3,384  )
improvements
allowance
Amortization of
deferred gain
on                    (77    )      (17    )      (153    )      (34     )
sale/leaseback
transactions
Total amount
expensed as         $  52,104       $ 49,347       $ 103,988       $ 98,845
rent
                                                                             

                    SUPPLEMENTAL SAME SITE OPERATING DATA

The following table presents operating data for all of the locations in
operation on June 30, 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 locations 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 locations and percentage amounts)
                                                                  
               Three Months Ended June 30,                             Six Months Ended June 30,
                                                   Change                                                  Change
               2013            2012                                2013            2012           
                                                   Fav/(Unfav)                                             Fav/(Unfav)
Number of
company          192               192                —                 191               191                —
operated
locations
                                                                                                                       
Fuel sales
volume           482,022           500,122             (3.6)   %         943,299           984,615             (4.2)   %
(gallons)
                                                                                                                       
Fuel           $ 1,512,711       $ 1,600,826           (5.5)   %       $ 3,026,024       $ 3,193,318           (5.2)   %
revenues
Fuel gross     $ 84,594          $ 95,670              (11.6)  %       $ 158,089         $ 163,230             (3.1)   %
margin
                                                                                                                       
Nonfuel        $ 359,389         $ 347,284             3.5     %       $ 670,585         $ 653,442             2.6     %
revenues
Nonfuel
gross          $ 196,657         $ 193,542             1.6     %       $ 370,485         $ 363,870             1.8     %
margin
Nonfuel
gross            54.7      %       55.7      %         (100)   pts       55.2      %       55.7      %         (50)    pts
margin
percentage
                                                                                                                       
Total
gross          $ 281,251         $ 289,212             (2.8)   %       $ 528,574         $ 527,100             0.3     %
margin
Site level
operating      $ 178,720         $ 173,436             3.0     %       $ 347,442         $ 339,244             2.4     %
expenses
Site level
operating
expenses
as a             49.7      %       49.9      %         20      pts       51.8      %       51.9      %         10      pts
percentage
of nonfuel
revenues
Site level
gross
margin in
excess of      $ 102,531         $ 115,776             (11.4)  %       $ 181,132         $ 187,856             (3.6)   %
site level
operating
expense
                                                                                                                       

(1) Excludes two locations TA operates that are owned by a joint venture and
locations 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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