Company Delivers Significant Financial
Improvement in Second Quarter
- Net Income of $28.9 Million Improved $26.8 Million Over
Prior Year
- Net Income Per Share of Common Stock Attributable to Common
Stockholders of $2.02 Improved $1.76 Over Prior Year
- Adjusted EBITDA of $73.5 Million Improved $27.7 Million, or
60.6%, Over Prior Year
- Adjusted EBITDAR of $137.1 Million Improved $28.3 Million,
or 26.0%, Over Prior Year
TravelCenters of America Inc. (Nasdaq: TA) today announced
financial results for the quarter ended June 30, 2021.
Jonathan M. Pertchik, TA's CEO, made the following statement
regarding the 2021 second quarter results:
"TA’s Transformation Plan has been underway for approximately 15
months, and our operating results for the second quarter
demonstrate that the changes we are making are taking hold, as we
improved net income from $2.2 million to $28.9 million and adjusted
EBITDA 60.6% to $73.5 million from $45.8 million compared to the
prior year. The improvements were driven primarily by a $60.5
million increase in nonfuel gross margin, which was the result of
operating improvements across nearly all business lines. We believe
that the many transformation initiatives we put in place are
driving better financial results throughout the organization. Our
discipline in managing expenses also continues to be an important
factor in delivering improved results, helping to drive a 90 basis
point improvement in adjusted EBITDAR margin versus the prior year
second quarter."
Reconciliations to GAAP:
Adjusted net income, adjusted net income per share of common
stock attributable to common stockholders, EBITDA, adjusted EBITDA,
adjusted EBITDAR and adjusted EBITDAR margin are non-GAAP financial
measures. The U.S. generally accepted accounting principles, or
GAAP, financial measures that are most directly comparable to the
non-GAAP measures disclosed herein are included in the supplemental
tables below.
Second Quarter 2021 Highlights:
- Cash and cash equivalents of $583.3 million and availability
under TA's revolving credit facility of $98.4 million for total
liquidity of $681.7 million as of June 30, 2021.
- On April 21, 2021, TA completed the sale of its Quaker Steak
& Lube, or QSL, business, which included 41 standalone
restaurants, for $5.0 million, excluding costs to sell and certain
closing adjustments.
- The following table presents detailed results for TA's fuel
sales for the 2021 and 2020 second quarters.
(in thousands, except per gallon
amounts)
Three Months Ended
June 30,
2021
2020
Change
Fuel sales volume (gallons):
Diesel fuel
512,943
423,082
21.2
%
Gasoline
70,687
53,134
33.0
%
Total fuel sales volume
583,630
476,216
22.6
%
Fuel gross margin
$
100,292
$
91,900
9.1
%
Fuel gross margin per gallon
$
0.172
$
0.193
(10.9)
%
- The following table presents detailed results for TA's nonfuel
revenues for the 2021 and 2020 second quarters.
(in thousands, except percentages)
Three Months Ended
June 30,
2021
2020
Change
Nonfuel revenues:
Store and retail services
$
194,440
$
158,240
22.9
%
Truck service
194,197
160,987
20.6
%
Restaurant
79,938
61,492
30.0
%
Diesel exhaust fluid
33,235
24,851
33.7
%
Total nonfuel revenues
$
501,810
$
405,570
23.7
%
Nonfuel gross margin
$
303,102
$
242,619
24.9
%
Nonfuel gross margin percentage
60.4
%
59.8
%
60
pts
- Net income of $28.9 million improved $26.8 million, or 1242.6%,
and adjusted net income of $29.7 million improved $18.9 million, or
176.2%, as compared to the prior year period.
- Adjusted EBITDA of $73.5 million increased $27.7 million, or
60.6%, as compared to the prior year period.
- Adjusted EBITDAR of $137.1 million increased $28.3 million, or
26.0%, as compared to the prior year period.
- Adjusted EBITDAR margin increased to 22.8% from 21.9% for the
prior year period.
Growth and Cost Control Strategies
During the 2020 second quarter, TA commenced a strategic
transformation, or its Transformation Plan, consisting of numerous
initiatives across its organization for the purpose of expanding
its travel center network, improving and enhancing operational
efficiencies and profitability, and strengthening its financial
position all in support of its core mission to return every
traveler to the road better than they came. Among these initiatives
was a corporate restructuring that resulted in immediate selling,
general and administrative expense savings and included significant
leadership appointments of qualified candidates who bring new and
valuable experiences as well as initiative, critical skills and new
visions and approaches to TA's business. TA also created a
centralized procurement group to drive economies of scale in
pricing, increased leverage in vendor negotiations which we believe
will ultimately lead to substantial purchasing savings and a
streamlined operation. Other key initiatives are focused in areas
of liquidity, expanding TA's franchise base, increasing diesel fuel
and gasoline gross margin and fuel sales volume, increasing market
share in the truck service business, improving merchandising and
increasing gross margin in store and retail services, improving
operating effectiveness in TA's food service offerings and
improving information technology systems, while focusing on
opportunities to rationalize and control costs.
Since the beginning of 2019, TA has entered into franchise
agreements covering 46 travel centers to be operated under its
travel center brand names; four of these franchised travel centers
began operations during 2019, 10 began operations during 2020, one
began operations during the first quarter of 2021 and two began
operations during the second quarter of 2021 and TA expects the
remaining 29 to open by the 2023 third quarter.
As a result of some external labor and supply chain constraints,
TA's capital expenditures plan for 2021 now contemplates aggregate
cash investments in the range of $130.0 million to $150.0 million
targeted towards improving and growing TA's core travel center
business. The 2021 capital expenditures plan includes projects to
enhance the guest experience through significant site level
upgrades at TA's travel centers and advanced technology systems
infrastructure. Approximately half of TA's capital expenditure plan
for 2021 is focused on growth initiatives that TA expects will meet
or exceed TA's 15% to 20% cash on cash return hurdle.
Importantly, TA is committed to embracing environmentally
friendly sources of energy and has formed a new business division,
eTA, that will seek to deliver sustainable and alternative energy
to the marketplace and focus on partnering with the public sector,
private companies and customers to facilitate industry
transformation. This business division will extend TA's commitment
to providing the widest range of non-fuel offerings across its
sites. Recent accomplishments include continued expansion of TA's
biodiesel blending capabilities, availability of DEF at the pump
and placement of electric vehicle charging stations. Moreover, TA
has hired a senior leader to lead eTA and has begun to onboard
additional dedicated internal resources, as well as create
relationships within the supply, storage and distribution chain,
with respect to its alternative energy initiative. TA believes its
large, well-located sites and its focus as a pure supplier may
provide TA with the opportunity to make both fossil and,
eventually, non-fossil fuels available and to potentially balance
or adjust its product and service offerings as it may determine and
subject to availability.
Conference Call
On August 3, 2021, 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, 2021. Following
management's remarks, there will be a question and answer
period.
The conference call telephone number is 877-329-4614.
Participants calling from outside the United States and Canada
should dial 412-317-5437. 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 412-317-0088. The replay pass code is
10157606.
A live audio webcast of the conference call will also be
available in a listen only mode on TA's website at
www.ta-petro.com. To access the webcast, participants should visit
TA's website about five minutes before the call. The archived
webcast will be available for replay on TA's website 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 Inc.
TA's nationwide business includes travel centers located in 44
U.S. states and in Canada and standalone truck service facilities
located in three states. TA's travel centers operate under the
"TravelCenters of America," "TA," "TA Express," "Petro Stopping
Centers" and "Petro" brand names and offer diesel fuel and
gasoline, restaurants, truck repair services, travel/convenience
stores and other services designed to provide attractive and
efficient travel experiences to professional drivers and other
motorists. TA's standalone truck service facilities operate under
the "TA Truck Service" brand name.
TRAVELCENTERS OF AMERICA INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS (UNAUDITED)
(in thousands, except per share
amounts)
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Revenues:
Fuel
$
1,328,631
$
577,410
$
2,405,889
$
1,452,339
Nonfuel
501,810
405,570
949,724
830,577
Rent and royalties from franchisees
3,839
3,123
7,763
6,535
Total revenues
1,834,280
986,103
3,363,376
2,289,451
Cost of goods sold (excluding
depreciation):
Fuel
1,228,339
485,510
2,228,167
1,278,484
Nonfuel
198,708
162,951
370,930
324,670
Total cost of goods sold
1,427,047
648,461
2,599,097
1,603,154
Site level operating expense
233,996
197,522
461,226
434,086
Selling, general and administrative
expense
36,590
37,976
72,520
75,204
Real estate rent expense
63,611
63,079
127,480
126,667
Depreciation and amortization expense
24,139
28,254
47,968
56,814
Other operating income, net
(872
)
—
(872
)
—
Income (loss) from operations
49,769
10,811
55,957
(6,474
)
Interest expense, net
11,739
7,233
23,123
14,689
Other expense, net
1,304
335
2,701
876
Income (loss) before income
taxes
36,726
3,243
30,133
(22,039
)
(Provision) benefit for income taxes
(7,779
)
(1,087
)
(6,929
)
5,654
Net income (loss)
28,947
2,156
23,204
(16,385
)
Less: net (income) loss for noncontrolling
interest
(409
)
32
(333
)
52
Net income (loss) attributable to
common stockholders
$
29,356
$
2,124
$
23,537
$
(16,437
)
Net income (loss) per share of common
stock
attributable to common
stockholders:
Basic and diluted
$
2.02
$
0.26
$
1.62
$
(1.98
)
Weighted average vested shares of
common stock
14,236
7,944
14,232
7,924
Weighted average unvested shares of
common stock
331
380
337
394
These financial statements should be read in
conjunction with TA's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2021, to be filed with the U.S. Securities and
Exchange Commission.
TRAVELCENTERS OF AMERICA INC.
RECONCILIATION OF NON-GAAP
FINANCIAL MEASURES
(in thousands, unless indicated
otherwise)
TA believes the non-GAAP financial measures presented in the
tables below are meaningful supplemental disclosures. Management
uses these measures in developing internal budgets and forecasts
and analyzing TA's performance and believes that they may help
investors gain a better understanding of changes in TA's operating
results and its ability to pay rent or service debt when due, make
capital expenditures and expand its business. These non-GAAP
financial measures also may help investors to make comparisons
between TA and other companies and to make comparisons of TA's
financial and operating results between periods.
The non-GAAP financial measures TA presents should not be
considered as alternatives to net income (loss) attributable to
common stockholders, net income (loss), income (loss) from
operations, operating margin, total fuel gross margin and nonfuel
revenues or net loss per share of common stock attributable to
common stockholders as an indicator of TA's operating performance
or as a measure of TA's liquidity. Also, the non-GAAP financial
measures TA presents may not be comparable to similarly titled
amounts calculated by other companies.
TA believes that adjusted net income (loss), adjusted net income
(loss) per share of common stock attributable to common
stockholders, EBITDA and adjusted EBITDA are meaningful disclosures
that may help investors to better understand TA's financial
performance by providing financial information that represents the
operating results of TA's operations without the effects of items
that do not result directly from TA's normal recurring operations
and may allow investors to better compare TA's performance between
periods and to the performance of other companies. TA calculates
EBITDA as net income (loss) before interest, income taxes and
depreciation and amortization expense, as shown below. TA
calculates adjusted EBITDA by excluding items that it considers not
to be normal, recurring, cash operating expenses or gains or
losses.
In addition, TA believes that, because it leases a majority of
its travel centers, presenting adjusted EBITDAR and adjusted
EBITDAR margin may help investors compare the value of TA against
companies that own and finance ownership of their properties with
debt financing, since these measures eliminate the effects of
variability in leasing methods and capital structures. These
measures may also help investors evaluate TA's valuation if it
owned its leased properties and financed that ownership with debt,
in which case the interest expense TA incurred for that debt
financing would be added back when calculating EBITDA. Adjusted
EBITDAR and adjusted EBITDAR margin are presented solely as
valuation measures and should not be viewed as measures of overall
operating performance or considered in isolation or as an
alternative to net loss because they exclude the real estate rent
expense associated with TA's leases and they are presented for the
limited purposes referenced herein. TA calculates EBITDAR as net
loss before interest, income taxes, real estate rent expense and
depreciation and amortization expense and adjusted EBITDAR by
excluding items that it considers not to be normal, recurring, cash
operating expenses or gains or losses. TA calculates adjusted
EBITDAR margin as adjusted EBITDAR as a percentage of total fuel
gross margin and nonfuel revenues.
TA believes that net income (loss) is the most directly
comparable GAAP financial measure to adjusted net income (loss),
EBITDA, adjusted EBITDA and adjusted EBITDAR and net income (loss)
per share of common stock attributable to common stockholders is
the most directly comparable GAAP financial measure to adjusted net
income (loss) per share of common stock attributable to common
stockholders.
The following tables present the reconciliations of the non-GAAP
financial measures to the respective most directly comparable GAAP
financial measures for the three and six months ended June 30, 2021
and 2020.
Calculation of adjusted net income
(loss):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Net income (loss)
$
28,947
$
2,156
$
23,204
$
(16,385
)
Add: Reorganization Plan costs(1)
—
3,884
—
4,288
Add: Goodwill impairment(2)
—
3,046
—
3,046
Add: QSL impairment(3)
—
—
650
—
Add: Asset write offs(4)
—
1,372
—
6,534
Add: Field employee bonus expense(5)
—
2,381
—
3,769
Add: Executive compensation expense(6)
—
803
—
2,109
Add: Equity investment ownership
dilution(7)
1,826
—
1,826
—
Less: Gain on sale of assets, net(8)
(897
)
—
(897
)
—
Less: Tax impact of adjusting items(9)
(195
)
(2,894
)
(331
)
(4,976
)
Adjusted net income (loss)(10)
$
29,681
$
10,748
$
24,452
$
(1,615
)
Calculation of adjusted net income
(loss) per share of common stock attributable to
common stockholders (basic and
diluted):
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Net income (loss) per share of common
stock attributable to common stockholders
(basic and diluted)
$
2.02
$
0.26
$
1.62
$
(1.98
)
Add: Reorganization Plan costs(1)
—
0.47
—
0.52
Add: Goodwill impairment(2)
—
0.36
—
0.37
Add: QSL impairment(3)
—
—
0.04
—
Add: Asset write offs(4)
—
0.16
—
0.79
Add: Field employee bonus expense(5)
—
0.29
—
0.45
Add: Executive compensation expense(6)
—
0.10
—
0.25
Add: Equity investment ownership
dilution(7)
0.13
—
0.13
—
Less: Gain on sale of assets, net(8)
(0.06
)
—
(0.06
)
—
Less: Tax impact of adjusting items(9)
(0.01
)
(0.35
)
(0.02
)
(0.60
)
Adjusted net income (loss) per share of
common stock attributable to common stockholders (basic and
diluted)(10)
$
2.08
$
1.29
$
1.71
$
(0.20
)
Calculation of EBITDA, adjusted EBITDA
and adjusted EBITDAR:
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Net income (loss)
$
28,947
$
2,156
$
23,204
$
(16,385
)
Less (add): Benefit (provision) for income
taxes
7,779
1,087
6,929
(5,654
)
Add: Depreciation and amortization
expense
24,139
28,254
47,968
56,814
Add: Interest expense, net
11,739
7,233
23,123
14,689
EBITDA
72,604
38,730
101,224
49,464
Add: Reorganization Plan costs(1)
—
3,884
—
4,288
Add: Field employee bonus expense(5)
—
2,381
—
3,769
Add: Executive compensation expense(6)
—
803
—
2,109
Add: Equity investment ownership
dilution(7)
1,826
—
1,826
—
Less: Gain on sale of assets, net(8)
(897
)
—
(897
)
—
Adjusted EBITDA(10)
73,533
45,798
102,153
59,630
Add: Real estate rent expense
63,611
63,079
127,480
126,667
Adjusted EBITDAR(10)
$
137,144
$
108,877
$
229,633
$
186,297
Calculation of operating
margin:
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Total revenues
$
1,834,280
$
986,103
$
3,363,376
$
2,289,451
Income (loss) from operations
49,769
10,811
55,957
(6,474
)
Operating margin
2.7
%
1.1
%
1.7
%
(0.3
)%
Calculation of adjusted EBITDAR margin:
Three Months Ended
June 30,
Six Months Ended
June 30,
2021
2020
2021
2020
Fuel gross margin
$
100,292
$
91,900
$
177,722
$
173,855
Nonfuel revenues
501,810
405,570
949,724
830,577
Total fuel gross margin and nonfuel
revenues
$
602,102
$
497,470
$
1,127,446
$
1,004,432
Adjusted EBITDAR(10)
$
137,144
$
108,877
$
229,633
$
186,297
Adjusted EBITDAR margin
22.8
%
21.9
%
20.4
%
18.5
%
(1)
Reorganization Plan Costs. On April 30,
2020, TA commenced a company-wide reorganization plan, or the
Reorganization Plan. During the three and six months ended June 30,
2020, TA recognized $3.9 million and $4.3 million, respectively, of
costs related to the Reorganization Plan, which were included in
selling, general and administrative expense in TA's consolidated
statements of operations and comprehensive income (loss).
(2)
Goodwill Impairment. During the three and
six months ended June 30, 2020, TA recognized a goodwill impairment
charge of $3.0 million with respect to its QSL reporting unit,
which were recognized in depreciation and amortization expense in
TA's consolidated statements of operations and comprehensive income
(loss).
(3)
QSL Impairment. TA had classified its QSL
business as held for sale as of December 31, 2020. During the six
months ended June 30, 2021 and prior to the sale completed on April
21, 2021, TA recorded additional impairment charges of $650
relating to its QSL business, which were included in depreciation
and amortization expense in TA's consolidated statements of
operations and comprehensive income (loss). Refer to note 8 below
for more information on the sale of QSL.
(4)
Asset Write Offs. During the three and six
months ended June 30, 2020, TA wrote off $0.8 million of
intangibles relating to three QSL franchises that closed in April
2020. During the three and six months ended June 30, 2020, TA wrote
off $0.5 million and $5.7 million, respectively, related to truck
service programs that were canceled. These amounts were included in
depreciation and amortization expense in TA's consolidated
statements of operations and comprehensive income (loss).
(5)
Field Employee Bonus Expense. In March and
April 2020, TA paid cash bonuses to certain employees who continued
to work at its locations during the COVID-19 pandemic. These
bonuses resulted in additional compensation expense of $2.4 million
and $3.8 million for the three and six months ended June 30, 2020,
respectively, which were included in site level operating expense
in TA's consolidated statements of operations and comprehensive
income (loss).
(6)
Executive Compensation Expense. TA agreed
to accelerate the vesting of previously granted stock awards and
make cash payments as part of TA's retirement and separation
agreements with certain former executive officers. The
accelerations and cash payments resulted in additional compensation
expense of $0.8 million and $2.1 million for the three and six
months ended June 30, 2020, respectively, which were included in
selling, general and administrative expense in TA's consolidated
statements of operations and comprehensive income (loss).
(7)
Equity Investment Ownership Dilution.
During the three and six months ended June 30, 2021, TA reduced its
ownership in Epona, LLC, owner of QuikQ LLC, an equity method
investment, to less than 50%, for which a loss of $1.8 million was
included in other expense, net in TA's consolidated statements of
operations and comprehensive income (loss).
(8)
Gain on Sale of Assets, Net. In May 2021,
TA sold a property located in Mesquite, Texas, to Industrial
Logistics Properties Trust, or ILPT, for a sales price of $2.2
million, excluding selling costs. The RMR Group LLC provides
management services to ILPT and Mr. Portnoy serves as the chair of
the board of trustee and as a managing trustee of ILPT. TA
recognized a gain on the sale of $1.5 million. On April 21, 2021,
TA completed the sale of its QSL business for $5.0 million,
excluding costs to sell and certain closing adjustments. TA
recognized a loss on the sale of $0.6 million. The gain and loss on
the sale of assets were included in other operating income, net for
the three and six months ended June 30, 2021.
(9)
Tax Impact of Adjusting Items. TA
calculated the income tax impact of the adjustments described above
by using its estimated statutory income tax rates of 21.0% and
25.2% for the three and six months ended June 30, 2021 and 2020,
respectively.
(10)
Reconciliations from net income (loss), or
net income (loss) per share of common stock attributable to common
stockholders (basic and diluted), the financial measures determined
in accordance with GAAP to the non-GAAP financial measures
disclosed herein, are included in the supplemental table above.
TRAVELCENTERS OF AMERICA INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS (UNAUDITED)
(in thousands)
June 30, 2021
December 31,
2020
Assets:
Current assets:
Cash and cash equivalents
$
583,251
$
483,151
Accounts receivable, net
142,835
94,429
Inventory
165,920
172,830
Other current assets
22,209
35,506
Total current assets
914,215
785,916
Property and equipment, net
785,052
801,789
Operating lease assets
1,693,350
1,734,883
Goodwill
22,213
22,213
Intangible assets, net
11,209
11,529
Other noncurrent assets
111,469
87,530
Total assets
$
3,537,508
$
3,443,860
Liabilities and Stockholders'
Equity:
Current liabilities:
Accounts payable
$
229,207
$
158,075
Current operating lease liabilities
114,023
111,255
Other current liabilities
196,953
175,867
Total current liabilities
540,183
445,197
Long term debt, net
525,070
525,397
Noncurrent operating lease liabilities
1,706,020
1,763,166
Other noncurrent liabilities
100,853
69,121
Total liabilities
2,872,126
2,802,881
Stockholders' equity (14,581 and 14,574
shares of common stock outstanding
as of June 30, 2021 and December 31, 2020,
respectively)
665,382
640,979
Total liabilities and stockholders'
equity
$
3,537,508
$
3,443,860
These financial statements should be read in
conjunction with TA's Quarterly Report on Form 10-Q for the quarter
ended June 30, 2021, to be filed with the U.S. Securities and
Exchange Commission.
Warning Concerning
Forward-Looking Statements
This press release contains statements that constitute
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995 and other securities laws.
Whenever TA uses words such as "believe," "expect," "anticipate,"
"intend," "plan," "estimate," "will," "may" and negatives or
derivatives of these 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 may not
occur. Actual results may differ materially from those contained in
or implied by TA's forward-looking statements. Forward-looking
statements involve known and unknown risks, uncertainties and other
factors, some of which are beyond TA's control. Among others, the
forward-looking statements which appear in this press release that
may not occur include:
- Statements about increased operating results may imply that TA
will realize similar or better results in the future and that TA's
business may be profitable in the future. TA operates in a highly
competitive industry and its business is subject to various market
and other risks and challenges. As a result, TA may not be able to
realize similar or better results in the future and it may fail to
be profitable in the future for these or other reasons. Since TA
became publicly traded in 2007, TA's operations have generated
losses and only occasionally generated profits;
- Statements about TA commencing numerous initiatives that it
believes will improve and enhance its operational efficiencies and
profitability, increase diesel fuel and gasoline gross margin and
fuel sales volume, increase market share in the truck service
industry, improve merchandising and gross margin in store and
retail services, improve operating effectiveness in its full
service restaurants and expand its franchise base. Further, TA's
statements about performance improvements it believes it has
already realized from certain of these changes. However, TA may not
be able to recognize the improvements to its operating results that
it anticipates. In addition, the costs incurred to complete the
initiatives may be more than TA anticipates;
- Statements about TA's ability to effectively execute through
challenging times caused by the COVID-19 pandemic may imply TA will
continue to be able to effectively execute during the pandemic and
its aftermath. However, it is uncertain when the pandemic may end
and what its ultimate impact will be on the economy, the travel
center industry and TA's business. As a result, TA may be unable to
effectively execute if the pandemic continues for an extended
duration or worsens;
- Statements about TA's discipline around managing expenses.
However, TA may not realize or maintain these cost savings;
- Statements about various divisional changes and TA's expected
benefits from those changes. TA may not realize the benefits it
expects from these changes;
- Statements about TA's capital plan and the resulting benefits
TA expects for its business and performances. Capital plans may
take longer to complete and cost more than expected. Further, the
projects pursued may not turn out as planned and may result in TA
not realizing the benefits it expects;
- Statements about the commitment of TA's 2021 capital
expenditures plan being in the range of $130.0 million and $150.0
million. TA may spend less or more than that amount;
- Statements about expecting to expand TA's network by entering
into new franchise agreements. TA may not succeed in entering these
agreements and the commencement and stabilization of any new
franchises may not occur or may be delayed, and these franchises
may not be successful or generate the royalties for TA that it
expects;
- Statements about TA's targeted returns on its capital
expenditures. TA may not be able to realize those returns;
- Statements about investing capital into relationships with
companies that supply, distribute or store electric or other
non-fossil fuel, alternative energy resources. TA may decide not to
invest capital into these relationships and these relationships may
not materialize or become beneficial, and if TA does further pursue
this business or make these investments TA may not realize the
returns or other benefits it may expect and TA could realize
losses; and
- Statements about TA's new eTA division, its new management, its
strategy and plan development, its California Energy Commission
grant and its developing of collaborative relationships with groups
in both electric and hydrogen vehicles. The alternative fuel market
is still in its early stages and it is not clear which, if any, of
those fuels and technologies will achieve commercial success and
scale. As a result, it is uncertain how TA's business may change,
adapt or evolve for the new fuels and technologies. TA's pursuit of
any of these may not be successful and it may incur losses with
respect to these efforts.
The information contained in TA's periodic reports, including
TA's Annual Report on Form 10-K for the year ended December 31,
2020, which has been 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, 2021 and June 30, 2021, which have been or
will be filed with the SEC, under the caption "Risk Factors," or
elsewhere in those reports, or incorporated therein, identifies
other important factors that could cause differences from TA's
forward-looking statements. TA's filings with the SEC are available
on the SEC's website at www.sec.gov.
You should not place undue reliance upon forward-looking
statements. Except as required by law, TA does not intend to update
or change any forward-looking statement as a result of new
information, future events or otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210802005698/en/
Kristin Brown, Director of Investor Relations (617) 796-8251
www.ta-petro.com
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