Company Outperforms Over Prior Year Period
Jonathan M. Pertchik, TA’s Chief Executive Officer, made the following statement regarding the 2022 third quarter results: “TA delivered another strong quarter, demonstrating continued resilience and strength in our business resulting in a 67% increase in net income and a 36% improvement in Adjusted EBITDA. TA has completed the transformation stage of our strategic plan and we are squarely focused on the growth and innovation phase to drive results into 2023 and beyond. Our fuel team continued to navigate ongoing uncertain macroeconomic conditions, delivering not only an ample supply of fuel to the field but also a 24.9% increase in fuel gross margin versus the prior year. Nonfuel gross margin also increased by 11.4% versus the prior year quarter, as strength in truck service and improved pricing benefited results. While we were able to increase pricing to help offset inflationary pressures felt across our industry as well as the broader economy, we are continuing to see the impact of cost growth and a relative softening in hospitality as inflation impacts consumer behavior.
Our ongoing investment in growth initiatives is designed to drive performance in 2023 and beyond, with a focus on site refreshes, technology initiatives and network expansion, which includes a total of five travel centers and two truck service facilities acquired thus far in 2022 and 16 franchise agreements signed. To date, these acquisitions are meeting or exceeding our EBITDA underwriting expectations. In addition, we expect that 15 of the previously signed franchise locations will begin operations in 2023, furthering the growth that our transformation plan envisioned. While our results in the third quarter continued to benefit from strong fuel margins, we are confident that our overall operational excellence will ensure TA remains resilient as we move towards our long-term targets in 2023 and beyond.”
Full details can be found here: 2022.09.30 Exhibit 99.1 (q4cdn.com)