Petro Income Reflects Volvo Transaction
August 14, 1999
Petro Stopping Centers reported increased revenues for the third quarter compared to last year, but notes that income was affected by a recently completed deal with Volvo.
Revenues for the quarter ended June 30 were $168.4 million, as compared to $165.2 million for the same period last year. Net income for the quarter was $1.9 million, as compared to $2.0 million for the same period last year.
Net income was affected by approximately $623,000 of expenses related to the Company's recapitalization transaction, which was completed July 23. Volvo Petro Holdings L.L.C., an affiliate of Volvo Trucks of North America, has invested $30 million to acquire an equity interest in Petro, making them the second largest equity holder. In addition, Mobil Long Haul Inc., an affiliate of Mobil Oil, invested an additional $5 million.
The investments by Volvo and Mobil, which effectively replaced certain equity holders, will help Petro expand services and locations.
"We are pleased with our second quarter earnings, even though our operating results continue to be effected by fluctuating trends in fuel margins," said Chairman and Chief Executive Officer Jack Cardwell. "We continue to see an upward trend in our non-fuel and restaurant results, despite pressure from lower fuel margins."