Boston, MA 08/25/2014 (wallstreetpr) – TravelCenters of America LLC (NYSE:TA) posted positive net income in the first quarter financial results. The net income came at $0.2 million as compared to the net loss of $12.1 million in the prior-year quarter. It accounts for the net income of $0.01 per share comparable to the net loss of $0.41 per share. The EBITDAR showed a growth of 31.2% to come at $74.8 million comparable to $57.0 million in the prior-year quarter.
The Financial Figures
The fuel gross margin of TravelCenters of America LLC (NYSE:TA) averaged at $0.187 per gallon in the first quarter. It was better than the fuel gross margin of $0.155 per gallon in the 1Q2013. Also, TravelCenters has worked on enhancing the performance of sites it acquired during 2011 to 2013. An investment of $300.5 million to acquire and enhance the performance of its 31 gas/convenience stores and 31 travel centers has reaped benefits in the first quarter of 2014.
The improvement in fuel gross margin and the performance of sites resulted in a positive net income in the first quarter. The pricing terms under the fuel supply contracts worked in the favor of TravelCenters. Overall, TravelCenters expects the acquisitions to reap benefits starting from the third year after acquisition.
The Management View
Thomas M. O’Brien, the CEO of TravelCenters of America LLC (NYSE:TA), said that TravelCenters is delighted to post positive net income in the first quarter results. The weather conditions were tough, and there was a contraction in U.S. retail inventories in the first quarter. It affected the diesel fuel volume adversely. Still, TravelCenters was able to overcome the problems and post positive results. TravelCenters of America LLC (NYSE:TA) worked well to integrate its operations of 31 gas/convenience centers acquired in the fourth quarter of 2013. The new product and service initiatives like RoadSquadOnSite and RoadSquadConnect performed well, leading to steady set of first quarter results. TravelCenters will continue to focus on the performance of acquired sites in the coming quarters.
