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TravelCenters of America Inc. reported first-quarter net income and revenue, as well as fuel gross margins.
Net income for the period ended March 31 climbed to $16.3 million, or $1.10 per diluted share, from a net loss of $5.7 million, a loss of 40 cents, a year earlier. early.
Revenue reached $2.3 billion from $1.5 billion a year earlier. Fuel revenue was $1.8 billion versus $1 billion a year earlier. Non-fuel revenue was $487 million, compared to $448 million for the 2021 period.
“In addition to our people, this quarter also continues to demonstrate the fundamental sustainability and resilience of TA’s business model, as well as our ability to drive growth while improving profitability,” CEO Jon Pertchik said during the call for results. “In short, as we move forward into our 50th anniversary year, TA’s great people, dependable business model, focus on investing in growth, have weathered rising inflationary pressures and ongoing labor and supply chain challenges, albeit supported by favorable fuel margin conditions.”
Pertchik said the first quarter required an intense focus on monitoring inflationary forces and cautiously passing on cost increases. “And managing labor pressures and variances in opening hours, and sourcing products to ensure shelves remain full while continuing to deliver on our large-scale transformation initiatives. across all areas of the business and accelerating the execution of our investment plan.”
Costs increased on some new activities:
- TA invested in a small fleet program, which included program development, as well as adding many salespeople and increasing marketing spend before generating the first new sales or benefiting from new revenue.
- TA has invested significantly in developing a comprehensive new customer loyalty program, and separately, machine learning and artificial intelligence to support diesel fuel pricing decisions, the Westlake-based company noted. , Ohio.
Motor fuel sales increased 2.1% over the prior year, driven by a 2.7% increase in diesel fuel sales volume and offset by a 3.2% decline in diesel fuel sales volume. gas. The company noted that the decline was partly due to higher retail prices, particularly in March, during a time of year when fuel and non-fuel volumes are generally at relatively low levels. lower. Fuel gross margin increased 45.8% from the prior year quarter, primarily due to higher fuel margins.
“Truck service revenue showed solid improvement with a 10.1% increase over 2021, driven in part by pricing adjustments and higher value work orders,” Pertchik said. “Technician staffing remains an important area of focus, with targeted compensation and training to improve technician efficiency and retention.”
Revenue from trucking services reached $188.3 million, compared to $171.1 million for the 2021 period.
Non-fuel revenues also continue to benefit from strong demand for diesel exhaust, fluid or DEF, which is required by newer trucks. DEF volume increased 6.5% from the first quarter of 2021, driven by increased network availability. As part of the capital plan, TA now offers DEF from dispensers on the diesel refueling island and – nearly all of its locations, and expects them to be available on all lanes and all the country’s TA Petros by the end of 2022. -2011 trucks retire every year, we expect demand for DEF to continue to grow,” Pertchik said.
DEF revenue was $44.8 million, down from $31.1 million a year earlier.
TravelCenters of America Inc. operated or franchised 281 travel centers, self-contained truck service facilities and one self-contained restaurant in the first quarter. Its customers include trucking fleets and their drivers, independent truckers, highway and local motorists and occasional diners.
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