WESTLAKE, Ohio (Aug. 10, 2010) — TravelCenters of America L.L.C. (TA) reported a small second-quarter profit compared to a year-earlier loss as better margins on fuel drove the improvement in its bottom line.
The operator of highway travel centers said its net income in the latest second quarter totaled $1.1 million, or seven cents a share. In the second quarter of 2009, TravelCenters posted a loss of $15 million, or 90 cents a share.
Revenues at TA rose 33 percent, to $1.505 billion from $1.128 billion.
TravelCenters said the fuel margin per gallon it achieved in the 2010 second quarter was a key factor in the turnaround.
“Although other factors have an effect, fuel gross margins per gallon tend to be lower during periods of rising fuel prices and higher during periods of falling fuel prices,” the company said in a statement. “Although they were at a higher level than in the 2009 second quarter, fuel commodity prices trended lower throughout the second quarter of 2010.”
As a result, the company said, its fuel gross margin per gallon “increased as compared to the prior year when fuel commodity prices were rising and, combined with an increase in fuel sales volumes, resulted in total fuel gross margin that was $15.5 million higher in the second quarter of 2010 than the second quarter of 2009.”
As of June 30, TA's business included 229 sites, 166 of which were operated under the “TravelCenters of America” or “TA” brand names; 63 were operated under the “Petro” brand name.