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TravelCenters of America reported a net loss and lower revenue in the first quarter as operations were limited by the novel coronavirus pandemic and unseasonably mild weather.
For the period ended March 31, TA reported a net loss of $18.5 million, or $2.23 per share, compared with a net loss of $12.7 million, or $1.58, a year earlier.
Revenue declined to $1.3 billion compared with $1.4 billion in the 2019 period.
“We navigated through a challenging first quarter, the latter part of which was heavily impacted by the COVID-19 pandemic,” CEO Jonathan Pertchik said in a release. “Our fuel sales volume during the first quarter increased 3.6%, which was driven entirely by diesel fuel sales volume. Our gasoline sales volume, after being up most of the first quarter, declined significantly beginning mid-March as consumers responded to the COVID-19 pandemic.
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“Despite the decrease in gasoline sales volume, total fuel gross margin was strong in March as both diesel fuel and gasoline costs declined as a result of reduced demand, which resulted in a 9.6% increase in our fuel gross margin for the 2020 first quarter.”
Fuel revenue fell to $874.9 million compared with $983.1 million in the 2019 period.
Pertchik added: “In addition to dealing with the effects of the COVID-19 pandemic, the results from our truck service and stores were largely impacted by unseasonably mild weather experienced in the 2020 first quarter as compared to extreme cold weather in the 2019 first quarter.”
TA’s stand-alone truck service facilities operate under the TA Truck Service brand name. Revenue in the segment fell 4.5% in the quarter to $153.9 million compared with $161.1 million a year earlier.
TA has travel centers in 44 states and in Canada, stand-alone truck service facilities in three states and stand-alone restaurants in 12 states. TA’s travel centers operate under the TravelCenters of America, TA, TA Express, Petro Stopping Centers and Petro brand names.
They offer products and services including diesel fuel and gasoline, restaurants, truck repair and travel/convenience stores. TA’s stand-alone truck service facilities operate under the TA Truck Service brand name.
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Source: https://www.ttnews.com/articles/ta-reports-net-loss-revenue-dip-q1
