Revenue for the third quarter of $242.9 million was $5.1 million higher than the same period last year. The increase in revenue was primarily due to an increase in fuel volume and the addition of a new site, partially offset by a decrease in the average selling price per fuel gallon and a $5-million payment received in 2001 for the early termination of four franchise agreements.
Net income for the quarter was $3.6 million as compared to $4.5 million in 2001. The decrease in net income was due to lower operating income resulting from the franchise termination fee received in 2001, partially offset by improved gross margin and reduced operating expenses.
Jack Cardwell, Petro's chairman and chief executive officer, said, "We are pleased that current operations continue to show solid growth. Factoring out the effect of the franchise termination fee received last year, [operating income plus depreciation and amortization] growth was 24% in the quarter and over 22% year to date."
Petro Stopping Centers L.P. has a nationwide network of 36 company-operated and 23 franchised locations. The company has multi-service facilities, with most sites featuring separate diesel and gasoline fueling facilities, Iron Skillet restaurants, travel and convenience stores and Petro Lube preventative maintenance and repair centers.