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TravelCenters of America Inc. saw its net income and sales increase in the third quarter on the strength of almost all lines of business.
“TA’s strong operating results for the third quarter continue to demonstrate our successful execution of the transformation plan we began to implement last year,” CEO Jonathan Pertchik said in a statement.
The company for the period ended September 30 reported net income of $ 22.2 million, or $ 1.52 per diluted share, compared to $ 8.6 million, 61 cents, in the period 2020.
Revenue soared to $ 1.9 billion from $ 1.2 billion a year earlier.
Fuel revenues reached $ 1.4 billion, from $ 792 million a year earlier.
TA sold 585,848 gallons of fuel in the quarter, of which 513,827 was diesel, according to the Westlake, Ohio-based company. A year earlier, it sold a total of 555,102 gallons.
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Its gross margin on fuel per gallon was 18.1 cents from 14.4 cents a year earlier.
Non-fuel revenues totaled $ 511 million, a gain of 7.8% over the period 2020 – in this segment, revenue from truck services reached $ 200 million, up 5.6% compared to the previous year.
“Looking ahead, we are excited to end this year on a strong note and move on to next year as our investment plan will build on our strong track record through site updates, technology enhancements and more. activities, including possible acquisitions, to generate continued excellent performance and take our business successfully into its 50th anniversary, ”added Pertchik.
The company said its transformation plan is to expand its network of travel centers, improve and improve operational efficiency and profitability, and strengthen its financial position, all in support of its core mission. ” to bring every traveler back on the road better than he came “.
TA has also created a centralized procurement group to generate economies of scale in pricing and increased leverage in negotiations with suppliers, resulting in substantial purchasing savings and a streamlined operation.
Other key initiatives, he said, focus on the areas of liquidity, expansion of TA’s franchise base, increasing the gross margin of diesel fuel and gasoline and fuel sales volume, increased market share in the truck service industry, improved merchandising and increased gross margin in store and retail. services, improving the operational efficiency of TA’s food service offerings and improving information technology systems, while focusing on opportunities to control and rationalize costs.
TA is the largest publicly traded, full-service travel center network in the country. Founded in 1972, it has 18,000 team members serving guests in over 275 locations in 44 states and Canada, primarily under the TA, Petro Stopping Centers and TA Express brands. Offerings include diesel and gasoline, truck maintenance and repair, full and quick service restaurants, travel stores, car and truck parking and other services.
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