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TravelCenters of America LLC Announces Third Quarter 2013 Results

  TravelCenters of America LLC Announces Third Quarter 2013 Results

Business Wire

WESTLAKE, Ohio -- November 4, 2013

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

At September 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”, “Petro” and other brand names. TA’s results were:

                Three Months Ended            Nine Months Ended

                 September 30,                   September 30,
                 2013          2012             2013           2012
                 (in thousands, except per share amounts and percentages)
                                                 
Revenues         $ 2,062,096   $ 2,034,153       $ 6,038,201     $ 6,070,529
Net income       $ 15,803      $ 18,990          $ 19,648        $ 34,657
                                                                             
Net income per
share:
Basic and        $ 0.53        $ 0.66            $ 0.66          $ 1.20
diluted
                                                                             
Supplemental
Data:
Retail fuel
sales volume
(excluding
wholesale)         510,913       492,201           1,510,910       1,482,799
gallons
Total fuel       $ 1,667,464   $ 1,666,810       $ 4,927,971     $ 5,039,010
revenues
Fuel gross       $ 91,346      $ 84,980          $ 258,086       $ 249,563
margin
                                                                             
Total nonfuel    $ 391,319     $ 363,402         $ 1,100,554     $ 1,020,299
sales
Nonfuel gross    $ 212,482     $ 199,385         $ 604,414       $ 565,098
margin
Nonfuel gross
margin             54.3      %   54.9      %       54.9      %     55.4      %
percentage
                                                                             
EBITDAR^(1)      $ 87,841      $ 83,604          $ 231,427       $ 227,425

(1) A reconciliation 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 third quarter of 2013 increased by approximately $4.2
million, or 5.1%, to $87.8 million, versus EBITDAR for the 2012 third quarter
of $83.6 million. The increase in EBITDAR is primarily attributable to an
increase in fuel gross margin per gallon, which averaged $0.176 during the
2013 third quarter versus $0.166 during the 2012 third quarter.

Net income for the third quarter of 2013 decreased approximately $3.2 million,
or 16.8%, to $15.8 million ($0.53 per share), versus net income for the 2012
third quarter of $19.0 million ($0.66 per share). The decline is largely due
to the increase in depreciation and amortization expense attributable to
acquisitions and other capital investments TA has made during 2012 and 2013
and the related acquisition and financing costs. Since the beginning of 2011,
TA has invested $216.9 million to acquire and improve 26 travel center
properties. The improvements to these properties are often substantial and
require a long period of time to plan, design, permit and complete, and once
completed then require a period of time to produce stabilized financial
results. TA estimates that the travel centers it acquires generally will reach
stabilization in approximately the third year after acquisition, but the
actual result can vary widely from this estimate due to many factors, some of
which are outside TA’s control. From the time of their acquisition by TA,
during the three, nine and twelve month periods ended September 30, 2013,
these 26 properties generated gross revenues in excess of cost of goods sold
and site level operating expenses of $7.6 million, $17.7 million and $19.3
million, respectively, compared to $1.6 million, $4.0 million and $5.2 million
for the three, nine and twelve month periods ended September 30, 2012,
respectively.

Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2013
third quarter results and acquisition activity:

“During the third quarter of 2013, we continued to successfully execute on our
business strategy. Both fuel gross margin per gallon and EBITDAR increased
year over year, and we continue to make progress acquiring new travel center
sites and integrating them into our nationwide network.

“Net income this quarter was lower than last year, but this was largely the
result of higher depreciation and interest costs in 2013 stemming from
recently acquired sites. Our plan is to offset these costs as the operations
at these sites are improved and begin to achieve financial results similar to
our other travel centers. Also, during the second and third quarters of 2013,
TA’s primary competitors engaged in aggressive sales efforts to maintain and
grow market share, which negatively impacted our fuel sales volume and fuel
gross margin per gallon during the period. These aggressive sales efforts by
our competitors appear to have abated somewhat in the third quarter versus the
second quarter.”

Investment Activity

During the nine months ended September 30, 2013, TA purchased six locations
(two of which were previously operated by franchisees of TA) for an aggregate
of $27.9 million and made capital investments of $125.7 million, including
$39.0 million to improve locations TA purchased during 2011 through 2013.

In October 2013, TA completed the acquisitions of two travel center properties
for a total of $8.9 million. TA has entered agreements to acquire two other
travel centers for a total of $11.6 million. TA expects to complete these
acquisitions in the fourth quarter of 2013, but these purchases are subject to
conditions and may not occur, may be delayed or the terms may change. 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
first nine months of 2013, TA sold to HPT $63.2 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
September 30, 2013. Following management’s remarks, there will be a question
and answer period.

The conference call telephone number is (800) 553-5260. Participants calling
from outside the United States and Canada should dial (612) 332-0630. 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 306184.

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 third 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 SITES
    ACQUIRED IN 2011, 2012 AND 2013 HAVE NOT YET REACHED STABILIZED FINANCIAL
    RESULTS CURRENTLY EXPECTED BY TA AND THAT TA ESTIMATES THAT ACQUIRED SITES
    GENERALLY WILL REACH STABILIZATION IN THE THIRD YEAR AFTER ACQUISITION.
    THE IMPLICATIONS OF THIS STATEMENT MAY BE THAT OPERATIONS AT RECENTLY
    ACQUIRED SITES WILL IMPROVE TO A LEVEL THAT WILL RESULT IN INCREASES IN
    EBITDAR, OPERATING INCOME 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 THESE 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 ACQUISITIONS WHICH HAVE BEEN AGREED UPON BUT
    WHICH HAVE NOT BEEN COMPLETED AS OF THE DATE OF THIS RELEASE. THESE
    STATEMENTS MAY IMPLY THAT THESE ACQUISITIONS WILL BE COMPLETED AND THAT
    THEY WILL IMPROVE TA’S FUTURE PROFITS. HOWEVER, ACQUISITIONS AND
    OPERATIONAL TAKEOVERS CAN BE DIFFICULT TO INTEGRATE, TIME CONSUMING AND/OR
    MORE EXPENSIVE THAN ANTICIPATED. ALSO, THESE ACQUISITIONS ARE SUBJECT TO
    CONDITIONS AND MAY NOT BE COMPLETED OR MAY BE DELAYED OR THEIR TERMS MAY
    CHANGE. FURTHER, TA MAY NOT OPERATE THESE ACQUIRED SITES AS PROFITABLY AS
    TA NOW EXPECTS;
  *THIS PRESS RELEASE REFERENCES LOCATIONS THAT TA HAS PURCHASED OR AGREED TO
    PURCHASE. 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 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;
  *THIS PRESS RELEASE STATES THAT DURING THE FIRST NINE MONTHS OF 2013 TA
    MADE CAPITAL INVESTMENTS OF $125.7 MILLION FOR IMPROVEMENTS TO EXISTING
    AND ACQUIRED LOCATIONS, AND SOLD TO HPT $63.2 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 TA’S LEASES WITH
    HPT. THERE CAN BE NO ASSURANCE THAT TA WILL HAVE SUFFICIENT WORKING
    CAPITAL OR CASH LIQUIDITY TO FUND FUTURE CAPITAL INVESTMENTS; AND
  *THIS PRESS RELEASE STATES THAT DURING THE SECOND AND THIRD QUARTERS OF
    2013, TA’S PRIMARY COMPETITORS ENGAGED IN AGGRESSIVE SALES EFFORTS TO
    MAINTAIN AND GROW MARKET SHARE, WHICH NEGATIVELY AFFECTED TA’S FUEL SALES
    VOLUME AND FUEL GROSS MARGIN PER GALLON, AND THAT THIS IMPACT ABATED
    SOMEWHAT IN THE THIRD QUARTER VERSUS THE SECOND QUARTER. THE IMPLICATION
    OF THESE STATEMENTS MAY BE THAT THE COMPETITIVE ENVIRONMENT WITHIN TA’S
    INDUSTRY HAS IMPROVED AND TA’S OPERATING RESULTS WILL IMPROVE. IN FACT, TA
    HAS NO CONTROL OF ITS COMPETITORS’ FUTURE ACTIONS. THE COMPETITIVE
    ENVIRONMENT IN TA’S INDUSTRY CAN CHANGE QUICKLY AND MAY CAUSE TA TO
    OPERATE LESS PROFITABLY OR TO EXPERIENCE LOSSES IN THE FUTURE.

THESE AND OTHER 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, ENVIRONMENTAL REGULATIONS 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;
  *THE TREND TOWARDS IMPROVED FUEL EFFICIENCY OF MOTOR VEHICLE ENGINES AND
    OTHER FUEL CONSERVATION PRACTICES EMPLOYED BY TA’S CUSTOMERS MAY CONTINUE
    TO REDUCE THE DEMAND FOR DIESEL FUEL AND MAY ADVERSELY AFFECT TA’S
    BUSINESS. ADDITIONALLY, FUTURE INCREASES IN FUEL PRICES MAY REDUCE THE
    DEMAND FOR THE PRODUCTS AND SERVICES THAT TA SELLS BECAUSE HIGH FUEL
    PRICES MAY ENCOURAGE FUEL CONSERVATION, DIRECT FREIGHT BUSINESS AWAY FROM
    TRUCKING OR OTHERWISE ADVERSELY AFFECT THE BUSINESS OF TA’S CUSTOMERS.
    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 CREDIT
    TERMS FOR PURCHASES. 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, 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 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 FUTURE TAXABLE INCOME IT MAY GENERATE. 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, INCLUDING TA’S LICENSES TO OPERATE
    GAMBLING ACTIVITIES, 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
REPORTS ON FORM 10-Q FOR THE PERIODS ENDED MARCH 31, JUNE 30 AND SEPTEMBER 30,
2013, WHICH HAVE BEEN OR WILL 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 September 30,
                                            2013               2012
Revenues:
Fuel                                        $  1,667,464        $  1,666,810
Nonfuel                                        391,319             363,402
Rent and royalties                            3,313              3,941
Total revenues                                 2,062,096           2,034,153
                                                                             
Cost of goods sold (excluding
depreciation):
Fuel                                           1,576,118           1,581,830
Nonfuel                                       178,837            164,017
Total cost of goods sold (excluding            1,754,955           1,745,847
depreciation)
                                                                             
Operating expenses:
Site level operating                           195,428             179,737
Selling, general & administrative              23,705              25,577
Real estate rent                               52,424              49,185
Depreciation and amortization                 14,646             12,874
Total operating expenses                      286,203            267,373
                                                                             
Income from operations                         20,938              20,933
                                                                             
Income from equity investees                   859                 801
Acquisition costs                              (1,026     )        (189      )
Interest income                                620                 512
Interest expense                              (4,514     )       (2,638    )
Income before income taxes                     16,877              19,419
Provision for income taxes                    1,074              429
Net income                                  $  15,803           $  18,990
                                                                             
Net income per share:
Basic and diluted                           $  0.53             $  0.66

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended September 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)
                                                                             
                                             Nine Months Ended September 30,
                                             2013               2012
Revenues:
Fuel                                         $  4,927,971        $ 5,039,010
Nonfuel                                         1,100,554          1,020,299
Rent and royalties                             9,676             11,220
Total revenues                                  6,038,201          6,070,529
                                                                             
Cost of goods sold (excluding
depreciation):
Fuel                                            4,669,885          4,789,447
Nonfuel                                        496,140           455,201
Total cost of goods sold (excluding             5,166,025          5,244,648
depreciation)
                                                                             
Operating expenses:
Site level operating                            570,007            525,962
Selling, general & administrative               71,414             73,110
Real estate rent                                156,412            148,030
Depreciation and amortization                  41,894            37,138
Total operating expenses                       839,727           784,240
                                                                             
Income from operations                          32,449             41,641
                                                                             
Income from equity investees                    2,018              1,263
Acquisition costs                               (1,346     )       (647      )
Interest income                                 1,162              1,094
Interest expense                               (13,009    )      (7,632    )
Income before income taxes                      21,274             35,719
Provision for income taxes                     1,626             1,062
Net income                                   $  19,648           $ 34,657
                                                                             
Net income per share:
Basic and diluted                            $  0.66             $ 1.20

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

                                                            
TRAVELCENTERS OF AMERICA LLC
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands)
                                                                 
                                               September 30,     December 31,
                                               2013              2012
Assets
Current assets:
Cash and cash equivalents                    $ 126,862         $ 35,189
Accounts receivable, net                       153,955           106,273
Inventories                                    193,088           191,006
Other current assets                          53,123           61,020
Total current assets                           527,028           393,488
                                                                 
Property and equipment, net                    623,255           576,512
Goodwill and intangible assets, net            24,297            20,041
Other noncurrent assets                       34,574           28,240
Total assets                                 $ 1,209,154       $ 1,018,281
                                                                 
Liabilities and Shareholders’ Equity
Current liabilities:
Accounts payable                             $ 178,177         $ 143,605
Current HPT Leases Liabilities                 31,765            28,354
Other current liabilities                     138,420          111,168
Total current liabilities                      348,362           283,127
                                                                 
Noncurrent HPT Leases liabilities              342,449           351,135
Senior Notes due 2028                          110,000           —
Other noncurrent liabilities                  33,298           30,585
Total liabilities                              834,109           664,847
                                                                 
Shareholders’ equity                          375,045          353,434
Total liabilities and shareholders’ equity   $ 1,209,154       $ 1,018,281

These financial statements should be read in conjunction with TA’s Quarterly
Report on Form10-Q for the quarter ended September 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      Nine Months Ended
                               September 30,           September 30,
                               2013       2012         2013        2012
Calculation of EBITDAR:^(1)
Net income                     $ 15,803   $ 18,990     $ 19,648    $ 34,657
Add: income taxes                1,074      429          1,626       1,062
Add: depreciation and            14,646     12,874       41,894      37,138
amortization
Deduct: interest income          (620   )   (512   )     (1,162  )   (1,094  )
Add: interest expense^(2)        4,514      2,638        13,009      7,632
Add: real estate rent           52,424    49,185      156,412    148,030
expense^(3)
EBITDAR                        $ 87,841   $ 83,604     $ 231,427   $ 227,425

^(1) EBITDAR is a not a financial measure prescribed by U.S. generally
accepted accounting principles, or GAAP. 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 GAAP.

^(2) Interest expense included the following:

                                 Three Months Ended    Nine Months Ended
                                  September 30,           September 30,
                                  2013       2012        2013        2012
Interest related to TA’s Senior   $ 2,731     $ 535       $ 7,845      $ 1,605
Notes and Credit Facility
HPT rent classified as interest   $ 1,757       1,816       5,242        5,436
Amortization of deferred            171         89          496          263
financing costs
Capitalized interest                (166  )     —           (806   )     —
Other                              21         198        232         328
                                  $ 4,514     $ 2,638     $ 13,009     $ 7,632

^(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 $57,067 and $54,321 during the three month
periods ended September 30, 2013 and 2012, respectively, while the total rent
amounts expensed during the quarters ended September 30, 2013 and 2012, were
$52,424 and $49,185, respectively. Cash paid under lease agreements was
$169,391 and $162,275 during the nine month periods ended September 30, 2013
and 2012, respectively, while the total rent amounts expensed during the nine
months ended September 30, 2013 and 2012, were $156,412 and $148,030,
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 liability. 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       Nine Months Ended
                           September 30,             September 30,
                           2013        2012         2013         2012
                                                                             
Cash payments to HPT for   $ 54,637     $ 51,867     $ 161,763     $ 154,973
rent
Other cash rental           2,430       2,454       7,628        7,302
payments
Total cash payments
under real property          57,067       54,321       169,391       162,275
leases
Adjustments for:
Change in accrued
estimated percentage         (111   )     76           473           76
rent
Adjustments to recognize
rent on a straight line      (483   )     (1,172 )     (1,383  )     (2,306  )
basis – HPT
Adjustments to recognize
rent on a straight line      2            29           27            191
basis – other
Amortization of
sale/leaseback financing     (525   )     (543   )     (1,547  )     (1,641  )
obligation
Portion of rent payments
recognized as interest       (1,757 )     (1,816 )     (5,242  )     (5,436  )
expense
Amortization of deferred
leasehold improvements       (1,692 )     (1,692 )     (5,077  )     (5,077  )
allowance
Amortization of deferred
gain on sale/leaseback      (77    )    (18    )    (230    )    (52     )
transactions
Total amount expensed as   $ 52,424     $ 49,185     $ 156,412     $ 148,030
rent

                    SUPPLEMENTAL SAME SITE OPERATING DATA

The following table presents operating data for all of the locations in
operation on September 30, 2013, that were operated by TA continuously since
the beginning of the earliest applicable period presented, with the exception
of two locations TA operates that are owned by a joint venture. 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 September 30,                    Nine Months Ended September 30,
                                           Change                                            Change
             2013            2012            Fav/(Unfav)         2013            2012            Fav/(Unfav)
Number of
company        195             195              —                 191             191              —
operated
locations
                                                                                                             
Fuel sales
volume         478,374         485,129           (1.4)   %         1,415,805       1,465,932         (3.4)   %
(gallons)
                                                                                                             
Fuel         $ 1,535,620     $ 1,583,090         (3.0)   %       $ 4,542,954     $ 4,764,085         (4.6)   %
revenues
Fuel gross   $ 86,085        $ 83,009            3.7     %       $ 243,222       $ 245,689           (1.0)   %
margin
                                                                                                             
Nonfuel      $ 370,661       $ 359,009           3.2     %       $ 1,035,559     $ 1,008,252         2.7     %
revenues
Nonfuel
gross        $ 201,246       $ 197,118           2.1     %       $ 568,619       $ 558,617           1.8     %
margin
Nonfuel
gross          54.3      %     54.9      %       (60)    pts       54.9      %     55.4      %       (50)    pts
margin
percentage
                                                                                                             
Total
gross        $ 287,331       $ 280,127           2.6     %       $ 811,841       $ 804,306           0.9     %
margin
Site level
operating    $ 184,336       $ 176,858           4.2     %       $ 532,600       $ 514,336           3.6     %
expenses
Site level
operating
expenses
as a           49.7      %     49.3      %       (40)    pts       51.4      %     51.0      %       (40)    pts
percentage
of nonfuel
revenues
Site level
gross
margin in
excess of    $ 102,995       $ 103,269           (0.3)   %       $ 279,241       $ 289,970           (3.7)   %
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
Katie Strohacker, 617-796-8251
Senior Manager of Investor Relations
www.ta-petro.com