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Travel Centers of America triples Q4 net income; will open 49 stores

3/13/2015

Westlake, Ohio – Rising fuel gross margins and a non-recurring litigation settlement helped Travel Centers of America Inc. (TA) roughly triple its net income to $34.34 million in the fourth quarter of fiscal 2014, from $11.97 million in the fourth quarter of the previous fiscal year. Revenues dipped 9% to $1.72 billion, from $1.9 billion.



As of Dec. 31, 2014, TA had entered agreements to acquire two additional travel centers, 26 convenience stores and a quick-service restaurant, for an aggregate of $41.4 million. During 2015 to date, TA has entered agreements to acquire a parcel of vacant land, a travel center that it previously leased and 19 gasoline stations/convenience stores for an aggregate of $36.3 million. That brings a total of 49 new stores TA is opening in fiscal 2015.



Revenues declined 2% to $7.78 billion, from $7.94 billion. Net income almost doubled to $60.97 million from $31.62 million.



“While the significant move in fuel product pricing during the second half of 2014 contributed to much of the year over year improvement with respect to fuel gross margins, we also remain committed to provide customers with competitively priced fuel and the nonfuel products and services necessary to support and enhance their travel experiences,” said Thomas M. O’Brien, CEO. “The results of these efforts produced solid nonfuel growth.”


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