Travelcenters of America Stock Surges On Solid Q2 Results, Clocks 68% Revenue Growth

Travelcenters of America Stock Surges On Solid Q2 Results, Clocks 68% Revenue Growth
  • Travelcenters of America Inc TA reported second-quarter revenue growth of 67.9% year-over-year to $3.08 billion, beating the consensus of $2.96 billion.
  • Adjusted EPS was $4.34, beating the consensus of $1.44.
  • Operating income increased by 89.3% Y/Y to $94.23 million, and the margin was 3.1%, up by 35 bps.
  • Adjusted EBITDA increased by 66.9%Y/Y to $122.75 million, and the margin was 4% flat compared to 2Q21.
  • Total fuel sales volume declined by 1.6% Y/Y, and Fuel gross margin per gallon increased by 58.7% Y/Y.
  • Nonfuel gross margin percentage contracted by 40 bps to 60%.
  • TA's capital expenditures for FY22 are expected to be in the range of $175 million to $200 million.
  • Cash and cash equivalents of $565.1 million and availability under TA's revolving credit facility of $185.4 million for total liquidity of $750.6 million as of June 30, 2022.
  • Jonathan M. Pertchik, TA's Chief Executive Officer, commented, "Investing in growth remains a key pillar in our transformation plan, with a focus on site refreshes, technology improvements and network expansion. We continue to evaluate opportunities to acquire high quality travel centers, with two full service travel centers and a truck service location added during the second quarter and a third full-service travel center location added in early July."
  • Price Action: TA shares are trading higher by 9.54% at $46.50 during the post-market session on Monday.

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