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TravelCenters of America Inc. Announces Third Quarter 2022 Financial Results

Company Delivers Continued Financial Improvement Over Prior Year Period

$37.0 Million in Net Income Improved by $14.8 Million, or 67%

$2.49 in Net Income Per Share Improved by $0.97

$88.6 Million in Adjusted EBITDA Increased by $23.4 Million, or 36%

TravelCenters of America Inc. (Nasdaq: TA) today announced financial results for the quarter ended September 30, 2022.

Jonathan M. Pertchik, TA’s Chief Executive Officer, made the following statement regarding the 2022 third quarter results:

“TA delivered another strong quarter, demonstrating continued resilience and strength in our business resulting in a 67% increase in net income and a 36% improvement in Adjusted EBITDA. TA has completed the transformation stage of our strategic plan and we are squarely focused on the growth and innovation phase to drive results into 2023 and beyond. Our fuel team continued to navigate ongoing uncertain macroeconomic conditions, delivering not only an ample supply of fuel to the field but also a 24.9% increase in fuel gross margin versus the prior year. Nonfuel gross margin also increased by 11.4% versus the prior year quarter, as strength in truck service and improved pricing benefited results. While we were able to increase pricing to help offset inflationary pressures felt across our industry as well as the broader economy, we are continuing to see the impact of cost growth and a relative softening in hospitality as inflation impacts consumer behavior.

Our ongoing investment in growth initiatives is designed to drive performance in 2023 and beyond, with a focus on site refreshes, technology initiatives and network expansion, which includes a total of five travel centers and two truck service facilities acquired thus far in 2022 and 16 franchise agreements signed. To date, these acquisitions are meeting or exceeding our EBITDA underwriting expectations. In addition, we expect that 15 of the previously signed franchise locations will begin operations in 2023, furthering the growth that our transformation plan envisioned. While our results in the third quarter continued to benefit from strong fuel margins, we are confident that our overall operational excellence will ensure TA remains resilient as we move towards our long-term targets in 2023 and beyond.”

Reconciliations to GAAP:

Adjusted net income, adjusted net income per share of common stock attributable to common stockholders, EBITDA, adjusted EBITDA, and adjusted EBITDAR 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.

Third Quarter 2022 Highlights:

  • Cash and cash equivalents of $467.3 million and availability under TA’s revolving credit facility of $179.4 million for total liquidity of $646.8 million as of September 30, 2022.
  • During the third quarter of 2022, TA completed the acquisitions of three travel centers, one truck service facility and certain assets of a travel center that TA owns but previously leased and franchised for a total of $55.2 million inclusive of certain closing costs and other purchase price adjustments.
  • The following table presents detailed results for TA’s fuel sales for the 2022 and 2021 third quarters.

(in thousands, except per gallon amounts)

Three Months Ended

September 30,

 

 

2022

 

2021

 

Change

Fuel sales volume (gallons):

 

 

 

 

 

Diesel fuel

 

518,778

 

 

513,827

 

1.0

%

Gasoline

 

63,861

 

 

72,021

 

(11.3

)%

Total fuel sales volume

 

582,639

 

 

585,848

 

(0.5

)%

 

 

 

 

 

 

Fuel gross margin

$

132,402

 

$

106,010

 

24.9

%

Fuel gross margin per gallon

$

0.227

 

$

0.181

 

25.4

%

  • The following table presents detailed results for TA’s nonfuel revenues for the 2022 and 2021 third quarters.

(in thousands, except percentages)

Three Months Ended

September 30,

 

 

2022

 

2021

 

Change

Nonfuel revenues:

 

 

 

 

 

Store and retail services

$

204,010

 

 

$

197,842

 

 

3.1

%

Truck service

 

227,428

 

 

 

200,192

 

 

13.6

%

Restaurant

 

87,486

 

 

 

79,850

 

 

9.6

%

Diesel exhaust fluid

 

46,017

 

 

 

33,179

 

 

38.7

%

Total nonfuel revenues

$

564,941

 

 

$

511,063

 

 

10.5

%

 

 

 

 

 

 

Nonfuel gross margin

$

339,560

 

 

$

304,798

 

 

11.4

%

Nonfuel gross margin percentage

 

60.1

%

 

 

59.6

%

 

50 pts

  • Net income of $37.0 million improved $14.8 million, or 66.6%, and adjusted net income of $37.6 million improved $15.4 million, or 69.4%, as compared to the prior year period.
  • Adjusted EBITDA of $88.6 million increased $23.4 million, or 36.0%, as compared to the prior year period.
  • Adjusted EBITDAR was $153.6 million and $461.5 million for the three and nine months ended September 30, 2022, respectively.

Growth Strategies

TA continues to prioritize and focus on key initiatives across its organization with the purpose of network growth through high return capital investments, bottom-line growth through process improvement and cost discipline, continued introduction of efficient technology and systems, and defining the future of on-highway mobility through a commitment to energy alternatives, all in support of its core mission to return every traveler to the road better than they came.

Acquiring high quality existing travel centers is a key aspect of TA’s strategic network growth plan. TA completed the acquisitions of certain assets of five travel centers and two truck service facilities during the first nine months of 2022. TA’s active acquisition pipeline may enable TA to add independent and franchised sites along active corridors to strengthen the geographic coverage of its network.

TA’s growth strategy also includes adding franchised travel centers to its network. Since the beginning of 2020, TA has entered into franchise agreements covering approximately 56 travel centers to be operated under its travel center brand names. Five of these franchised travel centers began operations during 2020, two began operations during 2021 and one began operations during the second quarter of 2022. TA expects the remaining 48 to all open by the fourth quarter of 2024.

TA’s capital expenditures for 2022 are expected to be in the range of $175.0 million to $200.0 million and includes projects to improve the guest experience through significant upgrades at TA’s travel centers, the expansion of restaurants and food offerings and improvements to TA’s technology systems infrastructure. Approximately 55% of TA’s expected capital expenditures in 2022 are focused on growth initiatives that TA expects will meet or exceed TA’s 15% to 20% cash on cash return hurdle.

TA is committed to embracing environmentally friendly energy sources through its eTA division, which seeks to deliver sustainable and alternative energy to the marketplace by working with the public sector, private companies, customers and guests to facilitate this initiative. Recent accomplishments include expanding TA’s biodiesel blending capabilities, increasing the availability of diesel exhaust fluid, or DEF, at all diesel pumps nationwide and installing electric vehicle charging stations. TA is also exploring ultra-high power truck charging and hydrogen fuel dispensing in parallel with traditional fossil fuels to provide energy alternatives as the transportation sector transitions to a lighter carbon footprint. TA believes its large, well-located sites will allow it to make both fossil and, eventually, non-fossil fuels available throughout its nationwide network of sites.

Conference Call

On November 2, 2022, 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, 2022. 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 through November 9, 2022. To hear the replay, dial 412-317-0088. The replay pass code is 2272611.

A live audio webcast of the conference call will also be available in a listen-only mode on TA’s website which is located at www.ta-petro.com. Participants who want to access the webcast should visit TA’s website about five minutes before the call. The archived webcast will be available for replay on TA’s website 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 Inc.

TravelCenters of America Inc. (Nasdaq: TA) is the nation’s largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 19,000 team members serve guests in over 275 locations in 44 states, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, travel stores, car and truck parking and other services dedicated to providing great experiences for its guests. TA is committed to sustainability, with its specialized business unit, eTA, focused on sustainable energy options for professional drivers and motorists, while leveraging alternative energy to support its own operations. TA operates approximately 600 full-service and quick-service restaurants and nine proprietary brands, including Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com.

TRAVELCENTERS OF AMERICA INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share amounts)

 

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Revenues:

 

 

 

 

 

 

 

Fuel

$

2,242,821

 

 

$

1,424,997

 

 

$

6,570,691

 

 

$

3,830,886

 

Nonfuel

 

564,941

 

 

 

511,063

 

 

 

1,605,385

 

 

 

1,460,787

 

Rent and royalties from franchisees

 

3,317

 

 

 

3,886

 

 

 

11,123

 

 

 

11,649

 

Total revenues

 

2,811,079

 

 

 

1,939,946

 

 

 

8,187,199

 

 

 

5,303,322

 

 

 

 

 

 

 

 

 

Cost of goods sold (excluding depreciation):

 

 

 

 

 

 

 

Fuel

 

2,110,419

 

 

 

1,318,987

 

 

 

6,168,740

 

 

 

3,547,154

 

Nonfuel

 

225,381

 

 

 

206,265

 

 

 

638,749

 

 

 

577,195

 

Total cost of goods sold

 

2,335,800

 

 

 

1,525,252

 

 

 

6,807,489

 

 

 

4,124,349

 

 

 

 

 

 

 

 

 

Site level operating expense

 

276,717

 

 

 

246,871

 

 

 

788,864

 

 

 

708,097

 

Selling, general and administrative expense

 

46,497

 

 

 

39,563

 

 

 

134,206

 

 

 

112,083

 

Real estate rent expense

 

64,954

 

 

 

63,898

 

 

 

194,753

 

 

 

191,378

 

Depreciation and amortization expense

 

29,267

 

 

 

24,276

 

 

 

80,260

 

 

 

72,244

 

Other operating expense (income), net

 

692

 

 

 

230

 

 

 

(1,795

)

 

 

(642

)

 

 

 

 

 

 

 

 

Income from operations

 

57,152

 

 

 

39,856

 

 

 

183,422

 

 

 

95,813

 

 

 

 

 

 

 

 

 

Interest expense, net

 

9,800

 

 

 

11,843

 

 

 

32,503

 

 

 

34,966

 

Other (income) expense, net

 

(1,358

)

 

 

(1,034

)

 

 

(3,212

)

 

 

1,667

 

Income before income taxes

 

48,710

 

 

 

29,047

 

 

 

154,131

 

 

 

59,180

 

Provision for income taxes

 

(11,735

)

 

 

(6,847

)

 

 

(36,872

)

 

 

(13,776

)

Net income

 

36,975

 

 

 

22,200

 

 

 

117,259

 

 

 

45,404

 

Less: net loss for noncontrolling interest

 

 

 

 

 

 

 

 

 

 

(333

)

Net income attributable to common stockholders

$

36,975

 

 

$

22,200

 

 

$

117,259

 

 

$

45,737

 

 

 

 

 

 

 

 

 

Net income per share of common stock attributable to common stockholders:

 

 

 

 

 

 

 

Basic and diluted

$

2.49

 

 

$

1.52

 

 

$

7.90

 

 

$

3.14

 

 

 

 

 

 

 

 

 

Weighted average vested shares of common stock

 

14,396

 

 

 

14,254

 

 

 

14,383

 

 

 

14,239

 

Weighted average unvested shares of common stock

 

460

 

 

 

327

 

 

 

462

 

 

 

334

 

These financial statements should be read in conjunction with TA’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, to be filed with the U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except for amounts listed in the footnotes to the tables below or 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, or net income (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 may help investors compare the value of TA against companies that own and finance ownership of their properties with debt financing, since this measure eliminates the effects of variability in leasing methods and capital structures. This measure 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 is presented solely as a valuation measure and should not be viewed as a measure of overall operating performance or considered in isolation or as an alternative to net income (loss) because it excludes the real estate rent expense associated with TA’s leases and it is presented for the limited purposes referenced herein. TA calculates EBITDAR as net income (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 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 that 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 nine months ended September 30, 2022 and 2021.

Calculation of adjusted net income:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Net income

 

$

36,975

 

 

$

22,200

 

$

117,259

 

 

$

45,404

 

Add: QSL impairment (1)

 

 

 

 

 

 

 

 

 

 

650

 

Less: Net gain on Seymour insurance recovery(2)

 

 

 

 

 

 

 

(1,984

)

 

 

 

Add: Costs related to the exit of TA’s Canadian travel center (3)

 

 

 

 

 

 

 

1,005

 

 

 

 

Add: Equity investment ownership dilution (4)

 

 

 

 

 

 

 

 

 

 

1,826

 

Less: Gain on sale of assets, net (5)

 

 

 

 

 

 

 

 

 

 

(897

)

Add: Costs related to acquisitions(6)

 

 

826

 

 

 

 

 

826

 

 

 

 

(Less) Add: Tax impact of adjusting items (7)

 

 

(199

)

 

 

 

 

36

 

 

 

(331

)

Adjusted net income

 

$

37,602

 

 

$

22,200

 

$

117,142

 

 

$

46,652

 

TRAVELCENTERS OF AMERICA INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except for amounts listed in the footnotes to the tables below or unless indicated otherwise)

 
Calculation of adjusted net income per share of common stock attributable to common stockholders (basic and diluted):

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Net income per share of common stock attributable to common stockholders (basic and diluted)

 

$

2.49

 

 

$

1.52

 

$

7.90

 

 

$

3.14

 

Add: QSL impairment (1)

 

 

 

 

 

 

 

 

 

 

0.04

 

Less: Net gain on Seymour insurance recovery (2)

 

 

 

 

 

 

 

(0.13

)

 

 

 

Add: Costs related to the exit of TA’s Canadian travel center (3)

 

 

 

 

 

 

 

0.07

 

 

 

 

Add: Equity investment ownership dilution (4)

 

 

 

 

 

 

 

 

 

 

0.13

 

Less: Gain on sale of assets, net (5)

 

 

 

 

 

 

 

 

 

 

(0.06

)

Add: Costs related to acquisitions (6)

 

 

0.06

 

 

 

 

 

0.06

 

 

 

 

Add (Less): Tax impact of adjusting items (7)

 

 

(0.01

)

 

 

 

 

 

 

 

(0.02

)

Adjusted net income per share of common stock attributable to common stockholders (basic and diluted)

 

$

2.54

 

 

$

1.52

 

$

7.90

 

 

$

3.23

 

Calculation of EBITDA and adjusted EBITDA:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Net income

 

$

36,975

 

$

22,200

 

$

117,259

 

 

$

45,404

 

Add: Provision for income taxes

 

 

11,735

 

 

6,847

 

 

36,872

 

 

 

13,776

 

Add: Depreciation and amortization expense

 

 

29,267

 

 

24,276

 

 

80,260

 

 

 

72,244

 

Add: Interest expense, net

 

 

9,800

 

 

11,843

 

 

32,503

 

 

 

34,966

 

EBITDA

 

 

87,777

 

 

65,166

 

 

266,894

 

 

 

166,390

 

Less: Net gain on Seymour insurance recovery (2)

 

 

 

 

 

 

(1,984

)

 

 

 

Add: Costs related to the exit of TA’s Canadian travel center (3)

 

 

 

 

 

 

1,005

 

 

 

 

Add: Equity investment ownership dilution (4)

 

 

 

 

 

 

 

 

 

1,826

 

Less: Gain on sale of assets, net (5)

 

 

 

 

 

 

 

 

 

(897

)

Add: Costs related to acquisitions (6)

 

 

826

 

 

 

 

826

 

 

 

 

Adjusted EBITDA

 

$

88,603

 

$

65,166

 

$

266,741

 

 

$

167,319

 

Calculation of adjusted EBITDAR:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2022

Adjusted EBITDA

 

$

88,603

 

$

266,741

Add: Real estate rent expense

 

 

64,954

 

 

194,753

Adjusted EBITDAR

 

$

153,557

 

$

461,494

TRAVELCENTERS OF AMERICA INC.

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(dollars in thousands, except for amounts listed in the footnotes to the tables below or unless indicated otherwise)

 
Total fuel gross margin and nonfuel revenues:

 

Three Months Ended

September 30,

 

Nine Months Ended

September 30,

 

2022

 

2021

 

2022

 

2021

Fuel gross margin

 

$

132,402

 

$

106,010

 

$

401,951

 

$

283,732

Nonfuel revenues

 

 

564,941

 

 

511,063

 

 

1,605,385

 

 

1,460,787

Total fuel gross margin and nonfuel revenues

 

$

697,343

 

$

617,073

 

$

2,007,336

 

$

1,744,519

(1)

 

QSL Impairment. On April 21, 2021, TA completed the sale of its Quaker Steak and Lube, or QSL, business for $5.0 million, excluding costs to sell and certain closing adjustments. During the nine months ended September 30, 2021, TA recorded a pre-sale impairment charge of $0.7 million relating to its QSL business, which was included in depreciation and amortization expense in TA’s consolidated statements of operations and comprehensive income. Refer to note 5 below for more information on the sale of QSL.

(2)

 

Net Gain on Seymour Insurance Recovery. Following a fire at TA’s Seymour, Indiana travel center in July 2020, TA pursued recoveries under its property and business interruption insurance policies. During the nine months ended September 30, 2022, TA recognized a net gain of $2.0 million, related to these recoveries as other operating expense (income), net in TA's consolidated statements of operations and comprehensive income.

(3)

 

Costs Related to the Exit of TA’s Canadian Travel Center. In March 2022, TA agreed to sell the assets of its travel center in Woodstock, Ontario, Canada for C$26.0 million (subsequently revised to C$23.0 million, or approximately $17.0 million based on foreign exchange rates as of September 30, 2022), excluding costs to sell and certain closing adjustments. TA expects the sale to close by the end of 2022. During the nine months ended September 30, 2022, TA recognized expense of $0.4 million for employee termination benefits and $0.6 million of environmental costs associated with the closure of its Woodstock travel center, which were included in site level operating expense in TA’s consolidated statements of operations and comprehensive income.

(4)

 

Equity Investment Ownership Dilution. During the nine months ended September 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 (income) expense, net in TA’s consolidated statements of operations and comprehensive income.

(5)

 

Gain on Sale of Assets, Net. In May 2021, TA sold a property located in Mesquite, Texas for a sales price of $2.2 million, excluding selling costs. 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 expense (income), net, for the nine months ended September 30, 2021.

(6)

 

Costs Related to Acquisitions. During the three and nine months ended September 30, 2022, TA incurred costs of $0.8 million for success fees related to the completion of certain acquisitions, which were included in other operating expense (income), net in TA’s consolidated statements of operations and comprehensive income.

(7)

 

Tax Impact of Adjusting Items. TA calculated the income tax impact of the adjustments described above by using the expected tax accounting treatment and estimated statutory income tax rate for the jurisdiction of each adjusting item.

TRAVELCENTERS OF AMERICA INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)

(in thousands)

 

 

September 30,

2022

 

December 31,

2021

Assets:

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

467,342

 

$

536,002

Accounts receivable, net

 

219,379

 

 

111,392

Inventory

 

242,606

 

 

191,843

Other current assets

 

35,623

 

 

37,947

Total current assets

 

964,950

 

 

877,184

 

 

 

 

Property and equipment, net

 

982,319

 

 

831,427

Operating lease assets

 

1,600,551

 

 

1,659,526

Goodwill

 

34,832

 

 

22,213

Intangible assets, net

 

14,871

 

 

10,934

Other noncurrent assets

 

85,695

 

 

107,217

Total assets

$

3,683,218

 

$

3,508,501

 

 

 

 

Liabilities and Stockholders’ Equity:

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

284,668

 

$

206,420

Current operating lease liabilities

 

116,303

 

 

118,005

Other current liabilities

 

239,486

 

 

194,853

Total current liabilities

 

640,457

 

 

519,278

 

 

 

 

Long term debt, net

 

524,355

 

 

524,781

Noncurrent operating lease liabilities

 

1,579,064

 

 

1,655,359

Other noncurrent liabilities

 

114,759

 

 

106,230

Total liabilities

 

2,858,635

 

 

2,805,648

 

 

 

 

Stockholders’ equity (14,854 and 14,839 shares of common stock outstanding as of September 30, 2022 and December 31, 2021, respectively)

 

824,583

 

 

702,853

Total liabilities and stockholders’ equity

$

3,683,218

 

$

3,508,501

These financial statements should be read in conjunction with TA’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2022, 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 including the current inflationary pressure, geopolitical risks, labor cost and availability challenges in the United States, the global supply chain issues and possible economic recession. 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;
  • Statements about TA’s fuel team successfully managing through a period of uncertain macroeconomic conditions and its ability to deliver fuel supply to TA’s locations may imply its fuel team will be able to continue to successfully manage in the current or future challenging market conditions or otherwise. TA’s business and operating results are significantly impacted by its ability to manage its fuel pricing and costs, and is heavily impacted by the global fuel market, which is often volatile. Small changes in TA’s fuel margins can have substantial impacts on its business and results of operations. As a result, TA’s fuel team may not successfully manage TA’s fuel pricing, costs and supply in future periods. Further, any operational or other improvements TA may realize from its initiatives may not be sufficient to overcome future negative fuel market conditions;
  • Statements about TA executing initiatives that it believes have and will enhance its growth, profitability and operational efficiency. However, TA may not be able to grow or recognize the improvements to its operating results and operations that it anticipates. In addition, the costs incurred to complete the initiatives may be greater than TA anticipates and it may not realize the returns it targets on its related investments;
  • Statements about TA’s maintaining pricing and cost discipline against a challenging inflationary backdrop. However, TA may not maintain this pricing and cost discipline in the wake of any continued inflationary pressures or otherwise;
  • Statements about TA’s growth strategy including its desire to acquire high quality, existing travel centers to expand its network of travel centers and the statements about TA’s acquisition pipeline may imply that TA will complete additional acquisitions and that its business will benefit as a result. Acquisitions involve risks. As a result, TA may not successfully identify desirable acquisition opportunities, negotiate acquisition agreements or complete any acquisitions it may agree to make;
  • Statements about acquisitions meeting or exceeding underwriting expectations. The results from the acquisitions may not continue or TA may not realize the benefits it expects from any acquisition it completes;
  • Statements about expecting to expand TA’s network by entering into new franchise agreements and the anticipated number of new franchised locations. However, TA may not succeed in entering these agreements and the commencement and stabilization of any new franchises may not occur or may be delayed or the franchise may not open, and these franchises may not be successful or generate the royalties for TA that it expects;
  • 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 2022 capital expenditures being in the range of $175.0 million and $200.0 million. TA may spend less or more than that amount, may spend these amounts in a different manner, these expenditures may not provide the benefits TA expects and TA may not realize its expected cash on cash return hurdle;
  • Statements about TA’s commitment to embracing environmentally friendly energy sources through its eTA division may not be successful, may not result in the benefits TA expects and may not be sufficient to offset declines TA may experience in its business if the market moves from fossil fuels to non-fossil fuels; and
  • The sale of TA’s travel center located in Canada is subject to conditions; as a result, that sale may not occur, may be delayed or the terms may change.

The information contained in TA’s periodic reports, including TA’s Annual Report on Form 10-K for the year ended December 31, 2021, 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, 2022, June 30, 2022 and September 30, 2022, 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.

Contacts

Stephen Colbert, Director of Investor Relations

(617) 796-8251

www.ta-petro.com

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