TravelCenters of America reported net income of $1.2 million for the second quarter, compared to a loss of $15 million during the same quarter a year ago.
Second-quarter revenues were $1.5 billion, up 33 percent from $1.1 billion during the comparable quarter of 2009.
The fuel margin per gallon in the 2010 second quarter was a key factor in the improvement. Fuel gross margins per gallon tend to be lower during periods of rising fuel prices and higher during periods of falling fuel prices.
During the second quarter of 2010, TA saw an increase in same site fuel sales volume of 7.1 percent compared with the second quarter of 2009. Similarly, during the first half of 2010. TA's same site fuel volumes increased 8.1 percent compared with the first half of 2009.
TA said these increases resulted from a combination of TA's marketing and customer service initiatives and increased trucking activity attributable to increased economic activity in the U.S. during the second quarter and first half of 2010.
Nonfuel sales for the 2010 second quarter and first half also increased from the comparable periods of 2009. largely due to an increased number of customers in TA's travel centers as a result of increased trucking activity.
In its release on these results, TA noted that the June 30 merger of competitors Pilot Travel Centers and Flying J combined the first and second largest competitors in the business, based on diesel fuel sales volume. As a result of this combination, TA may see increased competitive pressure that could negatively impact its sales volumes and profitability.
In addition, most of TA's trucking customers transact business with TA by use of fuel cards, which are issued by third party fuel card companies. The fuel card industry has only a few significant participants, including Comdata, the largest issuer of fuel cards, and TCH, a company owned or affiliated with Pilot Flying J. TA said it is unable to determine the extent of the effect the combined Pilot Flying J may have on TA's financial position, results of operations, or competitive position, although TA expects the combination may significantly alter the competitive conditions in the travel center industry. Further, TA is unable to determine the extent of the effect that competition, or lack thereof, between Comdata and TCH in particular, may result in future increases in TA's transaction fee expenses or working capital requirements, or both.
As of June 30, TA's business included 229 sites, 166 of which were operated under the "TravelCenters of America" or "TA" brand names and 63 of which were operated under the "Petro" brand name.
Second-quarter revenues were $1.5 billion, up 33 percent from $1.1 billion during the comparable quarter of 2009.
The fuel margin per gallon in the 2010 second quarter was a key factor in the improvement. Fuel gross margins per gallon tend to be lower during periods of rising fuel prices and higher during periods of falling fuel prices.
During the second quarter of 2010, TA saw an increase in same site fuel sales volume of 7.1 percent compared with the second quarter of 2009. Similarly, during the first half of 2010. TA's same site fuel volumes increased 8.1 percent compared with the first half of 2009.
TA said these increases resulted from a combination of TA's marketing and customer service initiatives and increased trucking activity attributable to increased economic activity in the U.S. during the second quarter and first half of 2010.
Nonfuel sales for the 2010 second quarter and first half also increased from the comparable periods of 2009. largely due to an increased number of customers in TA's travel centers as a result of increased trucking activity.
In its release on these results, TA noted that the June 30 merger of competitors Pilot Travel Centers and Flying J combined the first and second largest competitors in the business, based on diesel fuel sales volume. As a result of this combination, TA may see increased competitive pressure that could negatively impact its sales volumes and profitability.
In addition, most of TA's trucking customers transact business with TA by use of fuel cards, which are issued by third party fuel card companies. The fuel card industry has only a few significant participants, including Comdata, the largest issuer of fuel cards, and TCH, a company owned or affiliated with Pilot Flying J. TA said it is unable to determine the extent of the effect the combined Pilot Flying J may have on TA's financial position, results of operations, or competitive position, although TA expects the combination may significantly alter the competitive conditions in the travel center industry. Further, TA is unable to determine the extent of the effect that competition, or lack thereof, between Comdata and TCH in particular, may result in future increases in TA's transaction fee expenses or working capital requirements, or both.
As of June 30, TA's business included 229 sites, 166 of which were operated under the "TravelCenters of America" or "TA" brand names and 63 of which were operated under the "Petro" brand name.
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