Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 07, 2017 | |
Document and Entity Information | ||
Entity Registrant Name | TRAVELCENTERS OF AMERICA LLC | |
Entity Central Index Key | 1,378,453 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2017 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,556,062 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 76,625 | $ 61,312 |
Accounts receivable (less allowance for doubtful accounts of $733 and $744 as of June 30, 2017 and December 31, 2016, respectively) | 115,417 | 107,246 |
Inventory | 197,131 | 204,145 |
Other current assets | 26,292 | 29,358 |
Total current assets | 415,465 | 402,061 |
Property and equipment, net | 1,023,032 | 1,082,022 |
Goodwill | 89,698 | 88,542 |
Other intangible assets, net | 35,510 | 37,738 |
Other noncurrent assets | 60,988 | 49,478 |
Total assets | 1,624,693 | 1,659,841 |
Current liabilities: | ||
Accounts payable | 154,010 | 157,964 |
Current HPT Leases liabilities | 40,432 | 39,720 |
Other current liabilities | 148,515 | 132,648 |
Total current liabilities | 342,957 | 330,332 |
Long term debt, net | 319,183 | 318,739 |
Noncurrent HPT Leases liabilities | 375,792 | 381,854 |
Other noncurrent liabilities | 63,447 | 75,837 |
Total liabilities | 1,101,379 | 1,106,762 |
Shareholders' equity: | ||
Common shares, no par value, 41,369 shares authorized as of June 30, 2017 and December 31, 2016, and 39,556 and 39,523 shares issued and outstanding as of June 30, 2017 and December 31, 2016, respectively | 688,774 | 686,348 |
Accumulated other comprehensive income | 270 | 11 |
Accumulated deficit | (167,115) | (134,678) |
Total TA shareholders' equity | 521,929 | 551,681 |
Noncontrolling interests | 1,385 | 1,398 |
Total shareholders' equity | 523,314 | 553,079 |
Total liabilities and shareholders' equity | $ 1,624,693 | $ 1,659,841 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 733 | $ 744 |
Common shares, shares authorized (in shares) | 41,369 | 41,369 |
Common shares, shares issued (in shares) | 39,556 | 39,523 |
Common shares, shares outstanding (in shares) | 39,556 | 39,523 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Fuel | $ 990,265 | $ 931,211 | $ 1,925,561 | $ 1,640,739 |
Nonfuel | 504,096 | 494,467 | 955,470 | 930,485 |
Rent and royalties from franchisees | 4,307 | 4,330 | 8,403 | 8,606 |
Total revenues | 1,498,668 | 1,430,008 | 2,889,434 | 2,579,830 |
Cost of goods sold (excluding depreciation): | ||||
Fuel | 884,455 | 829,218 | 1,734,166 | 1,447,045 |
Nonfuel | 223,967 | 222,292 | 419,966 | 413,995 |
Total cost of goods sold | 1,108,422 | 1,051,510 | 2,154,132 | 1,861,040 |
Operating expenses: | ||||
Site level operating | 252,946 | 244,120 | 498,861 | 478,170 |
Selling, general and administrative | 37,877 | 36,009 | 78,689 | 66,975 |
Real estate rent | 69,144 | 64,736 | 137,143 | 128,265 |
Depreciation and amortization | 28,649 | 21,322 | 60,449 | 41,847 |
Total operating expenses | 388,616 | 366,187 | 775,142 | 715,257 |
Income (loss) from operations | 1,630 | 12,311 | (39,840) | 3,533 |
Acquisition costs | 63 | 1,092 | 203 | 2,061 |
Interest expense, net | 7,838 | 6,740 | 15,222 | 13,561 |
Income from equity investees | 925 | 1,091 | 1,203 | 2,038 |
(Loss) income before income taxes | (5,346) | 5,570 | (54,062) | (10,051) |
Benefit (provision) for income taxes | 2,380 | (1,985) | 21,695 | 3,692 |
Net (loss) income | (2,966) | 3,585 | (32,367) | (6,359) |
Less: net income for noncontrolling interests | 47 | 64 | 70 | 64 |
Net (loss) income attributable to common shareholders | (3,013) | 3,521 | (32,437) | (6,423) |
Other comprehensive income, net of tax: | ||||
Foreign currency income, net of taxes | 53 | 17 | 79 | 211 |
Equity interest in investee's unrealized gain on investments | 58 | 43 | 180 | 95 |
Other comprehensive income attributable to common shareholders | 111 | 60 | 259 | 306 |
Comprehensive (loss) income attributable to common shareholders | $ (2,902) | $ 3,581 | $ (32,178) | $ (6,117) |
Net (loss) income per common share attributable to common shareholders: | ||||
Basic and diluted (in usd per share) | $ (0.08) | $ 0.09 | $ (0.82) | $ (0.17) |
Consolidated Statements of Ope5
Consolidated Statements of Operations and Comprehensive (Loss) Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement [Abstract] | ||||
Foreign currency income, tax | $ 48 | $ 11 | $ 66 | $ 132 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net loss | $ (32,367) | $ (6,359) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Noncash rent expense | (7,153) | (6,768) |
Depreciation and amortization expense | 60,449 | 41,847 |
Deferred income taxes | (23,244) | (2,627) |
Changes in operating assets and liabilities, net of effects of business acquisitions: | ||
Accounts receivable | (8,177) | (33,270) |
Inventory | 7,111 | (4,833) |
Other assets | 3,098 | 6,598 |
Accounts payable and other liabilities | 13,427 | 60,728 |
Other, net | 1,992 | 980 |
Net cash provided by operating activities | 15,136 | 56,296 |
Cash flows from investing activities: | ||
Proceeds from asset sales | 76,048 | 120,961 |
Capital expenditures | (68,346) | (143,374) |
Acquisitions of businesses, net of cash acquired | (6,110) | (72,001) |
Other | (3,000) | 0 |
Net cash used in investing activities | (1,408) | (94,414) |
Cash flows from financing activities: | ||
Proceeds from sale leaseback transactions with HPT | 1,957 | 148 |
Sale leaseback financing obligation payments | (358) | (280) |
Other, net | (121) | (74) |
Net cash provided by (used in) financing activities | 1,478 | (206) |
Effect of exchange rate changes on cash | 107 | 36 |
Net increase (decrease) in cash and cash equivalents | 15,313 | (38,288) |
Cash and cash equivalents at the beginning of the period | 61,312 | 172,087 |
Cash and cash equivalents at the end of the period | 76,625 | 133,799 |
Supplemental disclosure of cash flow information: | ||
Interest paid (including rent classified as interest and net of capitalized interest) | 14,583 | 13,533 |
Income taxes paid (refunded) | $ 565 | $ (231) |
Business Description and Basis
Business Description and Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business Description and Basis of Presentation | Business Description and Basis of Presentation TravelCenters of America LLC, which we refer to as the Company or we, us and our, is a Delaware limited liability company. As of June 30, 2017 , we operated and franchised 539 travel centers, standalone convenience stores, and standalone restaurants. Our customers include trucking fleets and their drivers, independent truck drivers, highway and local motorists and casual diners. We also collect rents, royalties and other fees from our tenants and franchisees. We manage our business on the basis of two separately reportable segments, travel centers and convenience stores. See Note 12 for more information about our reportable segments. We have a single travel center located in a foreign country, Canada, that we do not consider material to our operations. As of June 30, 2017 , our business included 256 travel centers in 43 states in the U.S., primarily along the U.S. interstate highway system, and the province of Ontario, Canada. Our travel centers included 178 locations operated under the "TravelCenters of America" and "TA" brand names, or the TA brand, and 78 locations operated under the "Petro Stopping Centers" and "Petro" brand names, or the Petro brand. Of our 256 travel centers at June 30, 2017 , we owned 29 , we leased 200 , we operated two for a joint venture in which we own a noncontrolling interest and 25 were owned or leased from others by our franchisees. We operated 227 of our travel centers and franchisees operated 29 travel centers, including four we leased to franchisees. Our travel centers offer a broad range of products and services, including diesel fuel and gasoline, as well as nonfuel products and services such as truck repair and maintenance services, full service restaurants, quick service restaurants, or QSRs, and various customer amenities. We report this portion of our business as our travel center segment. As of June 30, 2017 , our business included 233 convenience stores in 11 states in the U.S. We operate our convenience stores under the "Minit Mart" brand name, or the Minit Mart brand. Of these 233 convenience stores at June 30, 2017 , we owned 198 , we leased 32 and we operated three for a joint venture in which we own a noncontrolling interest. Our convenience stores offer gasoline as well as a variety of nonfuel products and services, including coffee, groceries, some fresh foods, and, in many stores, a QSR and/or car wash. We report this portion of our business as our convenience store segment. As of June 30, 2017 , our business included 50 standalone restaurants in 14 states in the U.S. operated primarily under the "Quaker Steak & Lube" brand name, or the QSL brand. Of our 50 standalone restaurants at June 30, 2017 , we owned seven , we leased nine , we operated one for a joint venture in which we own a noncontrolling interest and 33 were owned or leased from others by our franchisees. We report this portion of our business within corporate and other in our segment information. The accompanying consolidated financial statements are unaudited. These unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, applicable for interim financial statements. The disclosures presented do not include all the information necessary for complete financial statements in accordance with GAAP. These unaudited interim financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 , or our Annual Report. In the opinion of our management, the accompanying consolidated financial statements include all adjustments, including normal recurring adjustments, considered necessary for a fair presentation. All intercompany transactions and balances have been eliminated. While our revenues are modestly seasonal, the quarterly variations in our operating results may reflect greater seasonal differences because our rent expense and certain other costs do not vary seasonally. For this and other reasons, our operating results for interim periods are not necessarily indicative of the results that may be expected for a full year. Certain prior year amounts have been reclassified to conform to the current year presentation. Fair Value Measurement Senior Notes We collectively refer to our $110,000 of 8.25% Senior Notes due 2028, our $120,000 of 8.00% Senior Notes due 2029 and our $100,000 of 8.00% Senior Notes due 2030 as our Senior Notes, which are our senior unsecured obligations. We estimate that, based on their trading prices (a Level 1 input), the aggregate fair value of our Senior Notes on June 30, 2017 , was $313,820 . Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , or ASU 2014-09, which establishes a comprehensive revenue recognition standard under GAAP for almost all industries. This new standard will apply for annual periods beginning after December 15, 2017, including interim periods therein. To address implementation of ASU 2014-09 and evaluate its impact on our consolidated financial statements, we have developed a project plan in which we are utilizing a bottom up approach to evaluate our revenue streams and related internal controls. Since much of our revenue is initiated at the point of sale, we do not believe the implementation of this standard will have a material impact on our consolidated financial statements. We expect to complete our assessment, including selecting a transition method for adoption of this standard, during 2017. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases , which establishes a comprehensive lease standard under GAAP for virtually all industries. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability on the consolidated balance sheet for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. The new standard will apply for annual periods beginning after December 15, 2018, including interim periods therein, and requires modified retrospective application. Early adoption is permitted. We are in the process of evaluating the effects the adoption of this update may have on our consolidated financial statements. We believe the adoption of this update will have a material impact on our consolidated balance sheets due to the recognition of the lease rights and obligations as assets and liabilities. While the adoption of this standard will have no effect on the cash we pay under our lease agreements, we expect amounts within our statements of operations and comprehensive (loss) income will change materially. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents a reconciliation of net (loss) income attributable to common shareholders to net (loss) income available to common shareholders and the related earnings per share. Three Months Ended Six Months Ended 2017 2016 2017 2016 Net (loss) income attributable to common shareholders, as reported $ (3,013 ) $ 3,521 $ (32,437 ) $ (6,423 ) Less: net (loss) income attributable to participating securities (159 ) 174 (1,717 ) (315 ) Net (loss) income available to common shareholders $ (2,854 ) $ 3,347 $ (30,720 ) $ (6,108 ) Weighted average common shares (1) 37,450 36,921 37,438 36,907 Basic and diluted net (loss) income per common share $ (0.08 ) $ 0.09 $ (0.82 ) $ (0.17 ) (1) Excludes unvested shares awarded under our share award plan, which shares are considered participating securities because they participate equally in earnings and losses with all of our other common shares. The weighted average number of unvested shares outstanding for the three months ended June 30, 2017 and 2016 , was 2,090 and 1,903 , respectively. The weighted average number of unvested shares outstanding for the six months ended June 30, 2017 and 2016 , was 2,092 and 1,905 , respectively. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions During the six months ended June 30, 2017 , we acquired six standalone restaurants from one of our franchisees for an aggregate purchase price of $6,110 , and accounted for this transaction as a business combination, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their respective fair values as of the date of acquisition. We have included the results of this acquired business in our consolidated financial statements from the date of acquisition. The pro forma impact of this acquisition, including the results of operations of the acquired standalone restaurants from the beginning of the periods presented, is not material to our consolidated financial statements. Since June 30, 2017 , we completed the acquisition of a travel center from one of our franchisees for a purchase price of $13,050 , excluding acquisition costs and working capital adjustments. Acquisition costs, such as legal fees, due diligence costs and closing costs, are not included as a component of consideration transferred in business combinations but instead are expensed as incurred. |
Goodwill
Goodwill | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill Goodwill consisted of the following: June 30, December 31, Travel center segment $ 17,252 $ 17,252 Convenience store segment 69,400 69,400 Corporate and other 3,046 1,890 Total goodwill $ 89,698 $ 88,542 During the six months ended June 30, 2017 , goodwill increase d by $1,156 in connection with the acquisition of six standalone restaurants. See Note 3 for more information about our acquisitions. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We historically have calculated the provision for income taxes during interim reporting periods by applying an estimated annual effective tax rate for the full fiscal year to net income (loss) before income taxes for the reporting period. Since we determined that relatively small changes in estimated annual income (loss) before income taxes could result in significant changes in the estimated annual effective tax rate, we have calculated our income tax provision (benefit) using a discrete rate based on the actual loss before income taxes for the six months ended June 30, 2017 . |
Equity Investments
Equity Investments | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Equity Investments | Equity Investments Our investments in equity affiliates, which are presented in our consolidated balance sheets in other noncurrent assets, and our proportional share of our investees' net income (loss) recognized in our consolidated statements of operations and comprehensive (loss) income were as follows: PTP Other (1) Total Investment balance: As of June 30, 2017 $ 23,358 $ 23,779 $ 47,137 As of December 31, 2016 21,657 24,097 45,754 Income (loss) from equity investments: Three months ended June 30, 2017 $ 1,154 $ (229 ) $ 925 Three months ended June 30, 2016 1,074 17 1,091 Six months ended June 30, 2017 1,701 (498 ) 1,203 Six months ended June 30, 2016 1,944 94 2,038 (1) Includes equity investments that are not individually material to our consolidated financial statements, including our investment in Affiliates Insurance Company, or AIC. See Note 9 for more information about our investment in AIC. Petro Travel Plaza Holdings LLC Petro Travel Plaza Holdings LLC, or PTP, is a joint venture between us and Tejon Development Corporation that owns two travel centers, three convenience stores and one standalone restaurant in California. We own a 40% interest in PTP and we receive a management fee from PTP to operate the two travel centers, three convenience stores and one standalone restaurant. The following table sets forth summarized financial information of PTP. PTP's operating results are not consolidated with ours as we account for our PTP investment under the equity method. Three Months Ended Six Months Ended 2017 2016 2017 2016 Total revenues $ 30,991 $ 29,168 $ 57,232 $ 52,972 Cost of goods sold (excluding depreciation) 21,780 20,952 40,915 37,328 Operating income 3,138 3,082 4,747 5,489 Net income and comprehensive income 3,021 2,838 4,523 5,129 |
HPT Leases
HPT Leases | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
HPT Leases | HPT Leases As of June 30, 2017 , we leased from Hospitality Properties Trust, or HPT, a total of 199 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which collectively we refer to as the HPT Leases. We recognized rent expense under the HPT Leases of $65,908 and $61,684 for the three months ended June 30, 2017 and 2016 , respectively, and $130,859 and $122,513 for the six months ended June 30, 2017 and 2016 , respectively. Our minimum annual rent as of June 30, 2017 , was $278,626 . In addition to the payment of minimum annual rent, the HPT Leases provide for payment to HPT of percentage rent based on increases in total nonfuel revenues over base year levels. The total amount of percentage rent that we incurred was $346 and $283 for the three months ended June 30, 2017 and 2016 , respectively, and $1,001 and $529 for the six months ended June 30, 2017 and 2016 , respectively. HPT waived $61 and $372 , respectively, of percentage rent under the Petro Lease for the three and six months ended June 30, 2016 ; as of June 30, 2016 , HPT had cumulatively waived all of the $2,500 of percentage rent it previously agreed to waive and no further waivers are contractually required. During the six months ended June 30, 2017 and 2016 , we sold to HPT $50,403 and $55,059 , respectively, of improvements we previously made to properties leased from HPT. As a result, pursuant to the terms of our HPT Leases, our minimum annual rent payable to HPT increased by $4,284 and $4,680 , respectively. At June 30, 2017 , our property and equipment balance included $21,016 of improvements of the type that we typically request that HPT purchase for an increase in minimum annual rent; however, HPT is not obligated to purchase these improvements. The following table summarizes the various amounts related to the HPT Leases that are included in our consolidated balance sheets. June 30, December 31, Current HPT Leases liabilities: Accrued rent $ 23,402 $ 22,868 Sale leaseback financing obligation 673 484 Straight line rent accrual 2,458 2,458 Deferred gain 10,129 10,140 Deferred tenant improvements allowance 3,770 3,770 Total current HPT Leases liabilities $ 40,432 $ 39,720 Noncurrent HPT Leases liabilities: Deferred rent obligation $ 150,000 $ 150,000 Sale leaseback financing obligation 22,627 21,165 Straight line rent accrual 47,346 47,771 Deferred gain 116,117 121,331 Deferred tenant improvements allowance 39,702 41,587 Total noncurrent HPT Leases liabilities $ 375,792 $ 381,854 On May 3, 2017 , pursuant to the terms of our June 2015 transaction agreement with HPT, as amended, we sold to, and leased back from, HPT the fourth and final development property that is subject to that agreement. We received proceeds of $27,602 , this property was added to the HPT Leases and our minimum annual rent under the HPT Leases increased by $2,346 as a result. Business and Property Management Agreements with RMR The RMR Group LLC, or RMR, provides us certain services that we require to operate our business. We have a business management agreement with RMR, which relates to various aspects of our business generally. In addition, for the periods presented and until July 31, 2017, we also had a property management agreement with RMR, which related to building management services for our headquarters building. Pursuant to our business management agreement and property management agreement with RMR, we incurred aggregate fees of $3,541 and $3,580 for the three months ended June 30, 2017 and 2016 , respectively, and $6,865 and $6,813 for the six months ended June 30, 2017 and 2016 , respectively. In addition, we incurred internal audit costs of $68 and $67 for the three months ended June 30, 2017 and 2016 , respectively, and $135 and $134 for the six months ended June 30, 2017 and 2016 , respectively, for which we reimburse RMR pursuant to our business management agreement. These fees and costs are included in selling, general and administrative expenses in our consolidated statements of operations and comprehensive (loss) income. For more information about our relationships with RMR please refer to Notes 11 and 12 in our Annual Report. Related Party Transactions We have relationships and historical and continuing transactions with HPT, RMR, AIC and others related to them. Relationship with HPT We are HPT's largest tenant and HPT is our principal landlord and largest shareholder. As of June 30, 2017 , HPT owned 3,420 of our common shares, representing approximately 8.6% of our outstanding common shares. As of June 30, 2017 , we leased from HPT a total of 199 properties under the HPT Leases. RMR provides management services to both us and HPT. See Note 7 for more information about our lease agreements and transactions with HPT. Relationship with RMR See Note 8 for information regarding our management agreements with RMR. Relationship with AIC We, HPT and five other companies to which RMR provides management services each currently own AIC, an Indiana insurance company, in equal amounts. We and the other AIC shareholders participate in a combined property insurance program arranged and reinsured in part by AIC. We currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $1,672 in connection with this insurance program for the policy year ending June 30, 2018, which amount may be adjusted from time to time as we acquire and dispose of properties that are included in this insurance program. As of June 30, 2017 and December 31, 2016, our investment in AIC had a carrying value of $7,799 and $7,116 , respectively. These amounts are included in other noncurrent assets on our consolidated balance sheets. We recognized income related to our investment in AIC, which amounts are presented as income from equity investees in our consolidated statements of operations and comprehensive (loss) income. Our other comprehensive income includes our proportionate share of unrealized gains on securities owned and held for sale by AIC. For further information about these and certain other related party relationships and transactions, please refer to our Annual Report. |
Business and Property Managemen
Business and Property Management Agreements with RMR | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Business and Property Management Agreements with RMR | HPT Leases As of June 30, 2017 , we leased from Hospitality Properties Trust, or HPT, a total of 199 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which collectively we refer to as the HPT Leases. We recognized rent expense under the HPT Leases of $65,908 and $61,684 for the three months ended June 30, 2017 and 2016 , respectively, and $130,859 and $122,513 for the six months ended June 30, 2017 and 2016 , respectively. Our minimum annual rent as of June 30, 2017 , was $278,626 . In addition to the payment of minimum annual rent, the HPT Leases provide for payment to HPT of percentage rent based on increases in total nonfuel revenues over base year levels. The total amount of percentage rent that we incurred was $346 and $283 for the three months ended June 30, 2017 and 2016 , respectively, and $1,001 and $529 for the six months ended June 30, 2017 and 2016 , respectively. HPT waived $61 and $372 , respectively, of percentage rent under the Petro Lease for the three and six months ended June 30, 2016 ; as of June 30, 2016 , HPT had cumulatively waived all of the $2,500 of percentage rent it previously agreed to waive and no further waivers are contractually required. During the six months ended June 30, 2017 and 2016 , we sold to HPT $50,403 and $55,059 , respectively, of improvements we previously made to properties leased from HPT. As a result, pursuant to the terms of our HPT Leases, our minimum annual rent payable to HPT increased by $4,284 and $4,680 , respectively. At June 30, 2017 , our property and equipment balance included $21,016 of improvements of the type that we typically request that HPT purchase for an increase in minimum annual rent; however, HPT is not obligated to purchase these improvements. The following table summarizes the various amounts related to the HPT Leases that are included in our consolidated balance sheets. June 30, December 31, Current HPT Leases liabilities: Accrued rent $ 23,402 $ 22,868 Sale leaseback financing obligation 673 484 Straight line rent accrual 2,458 2,458 Deferred gain 10,129 10,140 Deferred tenant improvements allowance 3,770 3,770 Total current HPT Leases liabilities $ 40,432 $ 39,720 Noncurrent HPT Leases liabilities: Deferred rent obligation $ 150,000 $ 150,000 Sale leaseback financing obligation 22,627 21,165 Straight line rent accrual 47,346 47,771 Deferred gain 116,117 121,331 Deferred tenant improvements allowance 39,702 41,587 Total noncurrent HPT Leases liabilities $ 375,792 $ 381,854 On May 3, 2017 , pursuant to the terms of our June 2015 transaction agreement with HPT, as amended, we sold to, and leased back from, HPT the fourth and final development property that is subject to that agreement. We received proceeds of $27,602 , this property was added to the HPT Leases and our minimum annual rent under the HPT Leases increased by $2,346 as a result. Business and Property Management Agreements with RMR The RMR Group LLC, or RMR, provides us certain services that we require to operate our business. We have a business management agreement with RMR, which relates to various aspects of our business generally. In addition, for the periods presented and until July 31, 2017, we also had a property management agreement with RMR, which related to building management services for our headquarters building. Pursuant to our business management agreement and property management agreement with RMR, we incurred aggregate fees of $3,541 and $3,580 for the three months ended June 30, 2017 and 2016 , respectively, and $6,865 and $6,813 for the six months ended June 30, 2017 and 2016 , respectively. In addition, we incurred internal audit costs of $68 and $67 for the three months ended June 30, 2017 and 2016 , respectively, and $135 and $134 for the six months ended June 30, 2017 and 2016 , respectively, for which we reimburse RMR pursuant to our business management agreement. These fees and costs are included in selling, general and administrative expenses in our consolidated statements of operations and comprehensive (loss) income. For more information about our relationships with RMR please refer to Notes 11 and 12 in our Annual Report. Related Party Transactions We have relationships and historical and continuing transactions with HPT, RMR, AIC and others related to them. Relationship with HPT We are HPT's largest tenant and HPT is our principal landlord and largest shareholder. As of June 30, 2017 , HPT owned 3,420 of our common shares, representing approximately 8.6% of our outstanding common shares. As of June 30, 2017 , we leased from HPT a total of 199 properties under the HPT Leases. RMR provides management services to both us and HPT. See Note 7 for more information about our lease agreements and transactions with HPT. Relationship with RMR See Note 8 for information regarding our management agreements with RMR. Relationship with AIC We, HPT and five other companies to which RMR provides management services each currently own AIC, an Indiana insurance company, in equal amounts. We and the other AIC shareholders participate in a combined property insurance program arranged and reinsured in part by AIC. We currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $1,672 in connection with this insurance program for the policy year ending June 30, 2018, which amount may be adjusted from time to time as we acquire and dispose of properties that are included in this insurance program. As of June 30, 2017 and December 31, 2016, our investment in AIC had a carrying value of $7,799 and $7,116 , respectively. These amounts are included in other noncurrent assets on our consolidated balance sheets. We recognized income related to our investment in AIC, which amounts are presented as income from equity investees in our consolidated statements of operations and comprehensive (loss) income. Our other comprehensive income includes our proportionate share of unrealized gains on securities owned and held for sale by AIC. For further information about these and certain other related party relationships and transactions, please refer to our Annual Report. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | HPT Leases As of June 30, 2017 , we leased from Hospitality Properties Trust, or HPT, a total of 199 properties under five leases, four of which we refer to as the TA Leases and one of which we refer to as the Petro Lease, and which collectively we refer to as the HPT Leases. We recognized rent expense under the HPT Leases of $65,908 and $61,684 for the three months ended June 30, 2017 and 2016 , respectively, and $130,859 and $122,513 for the six months ended June 30, 2017 and 2016 , respectively. Our minimum annual rent as of June 30, 2017 , was $278,626 . In addition to the payment of minimum annual rent, the HPT Leases provide for payment to HPT of percentage rent based on increases in total nonfuel revenues over base year levels. The total amount of percentage rent that we incurred was $346 and $283 for the three months ended June 30, 2017 and 2016 , respectively, and $1,001 and $529 for the six months ended June 30, 2017 and 2016 , respectively. HPT waived $61 and $372 , respectively, of percentage rent under the Petro Lease for the three and six months ended June 30, 2016 ; as of June 30, 2016 , HPT had cumulatively waived all of the $2,500 of percentage rent it previously agreed to waive and no further waivers are contractually required. During the six months ended June 30, 2017 and 2016 , we sold to HPT $50,403 and $55,059 , respectively, of improvements we previously made to properties leased from HPT. As a result, pursuant to the terms of our HPT Leases, our minimum annual rent payable to HPT increased by $4,284 and $4,680 , respectively. At June 30, 2017 , our property and equipment balance included $21,016 of improvements of the type that we typically request that HPT purchase for an increase in minimum annual rent; however, HPT is not obligated to purchase these improvements. The following table summarizes the various amounts related to the HPT Leases that are included in our consolidated balance sheets. June 30, December 31, Current HPT Leases liabilities: Accrued rent $ 23,402 $ 22,868 Sale leaseback financing obligation 673 484 Straight line rent accrual 2,458 2,458 Deferred gain 10,129 10,140 Deferred tenant improvements allowance 3,770 3,770 Total current HPT Leases liabilities $ 40,432 $ 39,720 Noncurrent HPT Leases liabilities: Deferred rent obligation $ 150,000 $ 150,000 Sale leaseback financing obligation 22,627 21,165 Straight line rent accrual 47,346 47,771 Deferred gain 116,117 121,331 Deferred tenant improvements allowance 39,702 41,587 Total noncurrent HPT Leases liabilities $ 375,792 $ 381,854 On May 3, 2017 , pursuant to the terms of our June 2015 transaction agreement with HPT, as amended, we sold to, and leased back from, HPT the fourth and final development property that is subject to that agreement. We received proceeds of $27,602 , this property was added to the HPT Leases and our minimum annual rent under the HPT Leases increased by $2,346 as a result. Business and Property Management Agreements with RMR The RMR Group LLC, or RMR, provides us certain services that we require to operate our business. We have a business management agreement with RMR, which relates to various aspects of our business generally. In addition, for the periods presented and until July 31, 2017, we also had a property management agreement with RMR, which related to building management services for our headquarters building. Pursuant to our business management agreement and property management agreement with RMR, we incurred aggregate fees of $3,541 and $3,580 for the three months ended June 30, 2017 and 2016 , respectively, and $6,865 and $6,813 for the six months ended June 30, 2017 and 2016 , respectively. In addition, we incurred internal audit costs of $68 and $67 for the three months ended June 30, 2017 and 2016 , respectively, and $135 and $134 for the six months ended June 30, 2017 and 2016 , respectively, for which we reimburse RMR pursuant to our business management agreement. These fees and costs are included in selling, general and administrative expenses in our consolidated statements of operations and comprehensive (loss) income. For more information about our relationships with RMR please refer to Notes 11 and 12 in our Annual Report. Related Party Transactions We have relationships and historical and continuing transactions with HPT, RMR, AIC and others related to them. Relationship with HPT We are HPT's largest tenant and HPT is our principal landlord and largest shareholder. As of June 30, 2017 , HPT owned 3,420 of our common shares, representing approximately 8.6% of our outstanding common shares. As of June 30, 2017 , we leased from HPT a total of 199 properties under the HPT Leases. RMR provides management services to both us and HPT. See Note 7 for more information about our lease agreements and transactions with HPT. Relationship with RMR See Note 8 for information regarding our management agreements with RMR. Relationship with AIC We, HPT and five other companies to which RMR provides management services each currently own AIC, an Indiana insurance company, in equal amounts. We and the other AIC shareholders participate in a combined property insurance program arranged and reinsured in part by AIC. We currently expect to pay aggregate annual premiums, including taxes and fees, of approximately $1,672 in connection with this insurance program for the policy year ending June 30, 2018, which amount may be adjusted from time to time as we acquire and dispose of properties that are included in this insurance program. As of June 30, 2017 and December 31, 2016, our investment in AIC had a carrying value of $7,799 and $7,116 , respectively. These amounts are included in other noncurrent assets on our consolidated balance sheets. We recognized income related to our investment in AIC, which amounts are presented as income from equity investees in our consolidated statements of operations and comprehensive (loss) income. Our other comprehensive income includes our proportionate share of unrealized gains on securities owned and held for sale by AIC. For further information about these and certain other related party relationships and transactions, please refer to our Annual Report. |
Contingencies
Contingencies | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies Environmental Contingencies Extensive environmental laws regulate our operations and properties. These laws may require us to investigate and clean up hazardous substances, including petroleum or natural gas products, released at our owned and leased properties. Governmental entities or third parties may hold us liable for property damage and personal injuries, and for investigation, remediation and monitoring costs incurred in connection with any contamination and regulatory compliance at our locations. We use both underground storage tanks and above ground storage tanks to store petroleum products, natural gas and other hazardous substances at our locations. We must comply with environmental laws regarding tank construction, integrity testing, leak detection and monitoring, overfill and spill control, release reporting and financial assurance for corrective action in the event of a release. At some locations we must also comply with environmental laws relative to vapor recovery or discharges to water. Under the terms of the HPT Leases, we generally have agreed to indemnify HPT for any environmental liabilities related to properties that we lease from HPT and we are required to pay all environmental related expenses incurred in the operation of the leased properties. Under an agreement with Equilon Enterprises LLC doing business as Shell Oil Products U.S., or Shell, we have agreed to indemnify Shell and its affiliates from certain environmental liabilities incurred with respect to our travel centers where Shell has installed natural gas fueling lanes. From time to time we have received, and in the future likely will receive, notices of alleged violations of environmental laws or otherwise have become or will become aware of the need to undertake corrective actions to comply with environmental laws at our locations. Investigatory and remedial actions were, and regularly are, undertaken with respect to releases of hazardous substances at our locations. In some cases we have received, and may receive in the future, contributions to partially offset our environmental costs from insurers, from state funds established for environmental clean up associated with the sale of petroleum products or from indemnitors who agreed to fund certain environmental related costs at locations purchased from those indemnitors. To the extent we incur material amounts for environmental matters for which we do not receive or expect to receive insurance or other third party reimbursement and for which we have not previously recorded a liability, our operating results may be materially adversely affected. In addition, to the extent we fail to comply with environmental laws and regulations, or we become subject to costs and requirements not similarly experienced by our competitors, our competitive position may be harmed. At June 30, 2017 , we had a gross accrued liability of $3,652 for environmental matters as well as a receivable for expected recoveries of certain of these estimated future expenditures of $805 , resulting in an estimated net amount of $2,847 that we expect to fund in the future. We cannot precisely know the ultimate costs we may incur in connection with currently known environmental related violations, corrective actions, investigation and remediation; however, we do not expect the costs for such matters to be material, individually or in the aggregate, to our financial position or results of operations. In February 2014, we reached an agreement with the California State Water Resources Control Board, or the State Water Board, to settle certain claims the State Water Board had filed against us in California Superior Court, or the Superior Court, in 2010 relating to alleged violations of underground storage tank laws and regulations for a cash payment of $1,800 ; suspended penalties of $1,000 that would become payable by us in the future if, prior to March 2019, we fail to comply with specified underground storage tank laws and regulations; and our agreement to invest, prior to March 2018, up to $2,000 of verified costs to develop and implement a comprehensive compliance program for the underground storage tank systems at all of our California facilities that is above and beyond minimum requirements of California law (which costs have since been incurred and were verified as of February 2017). The settlement, which was approved by the Superior Court on February 20, 2014, also included injunctive relief provisions requiring that we comply with certain California environmental laws and regulations applicable to underground storage tank systems. In October 2015, the State Water Board issued a notice of alleged suspended penalty conduct claiming that we are liable for the full amount of the $1,000 in suspended penalties as a result of five alleged violations of underground storage tank regulations and requesting further information concerning the alleged violations. In November 2015, we filed our response to the State Water Board's notice and we have since met with the State Water Board to attempt to respond to these matters without a court hearing. We believe we have meritorious defenses to these alleged violations, but cannot predict whether any penalties relating to these matters will be assessed by the Superior Court, which has retained jurisdiction over such matters. The State Water Board also has retained the right to file a separate action relating to these violations, but to date has not done so. As of June 30, 2017 , our balance sheet included a liability of $1,000 with respect to these matters concerning the State Water Board and we believe, though we can provide no assurance, that any additional amount of loss we may realize above that accrued, if any, upon the ultimate resolution of this matter will not be material to us. We currently have insurance of up to $10,000 per incident and up to $25,000 in the aggregate for certain environmental liabilities, subject, in each case, to certain limitations and deductibles. However, we can provide no assurance that we will be able to maintain similar environmental insurance coverage in the future on acceptable terms. We cannot predict the ultimate effect changing circumstances and changing environmental laws may have on us in the future or the ultimate outcome of matters currently pending. We cannot be certain that contamination presently unknown to us does not exist at our sites, or that material liability will not be imposed on us in the future. If we discover additional environmental issues, or if government agencies impose additional environmental requirements, increased environmental compliance or remediation expenditures may be required, which could have a material adverse effect on us. Legal Proceedings We are routinely involved in various legal and administrative proceedings, including tax audits, incidental to the ordinary course of our business. Except as set forth below, we do not expect that any litigation or administrative proceedings in which we are presently involved will have a material adverse effect on our business, financial condition, results of operations or cash flows. On November 30, 2016, we filed a complaint, or the Complaint, captioned TA Operating LLC v. Comdata, Inc. and FleetCor Technologies, Inc. , C.A. No. 12954-CB (Del. Ch.), in the Court of Chancery of the State of Delaware, or the Court, against FleetCor Technologies, Inc., or FleetCor, and its subsidiary Comdata Inc., or Comdata, with respect to a notice of termination we received from Comdata on November 3, 2016. Based upon Comdata's assertion that we had breached an agreement under which we agreed to install radio frequency identification, or RFID, technology at our travel centers, or the RFID Agreement, the notice purported to terminate a different agreement between us and Comdata under which we agreed to accept Comdata issued fuel cards through January 2, 2022, for certain purchases by our customers in exchange for fees payable by us to Comdata, or the Merchant Agreement. In the Complaint, we seek, among other things, (a) a declaration that we are not in default under our Merchant Agreement; (b) a judgment that Comdata has breached its contractual duties to us; (c) a judgment that Comdata breached its implied covenant of good faith and fair dealing to us; (d) a judgment that Comdata has and is willfully and knowingly engaged in unfair, abusive and deceptive business practices in the course of its business dealings with us in violation of Tennessee law; (e) an order for specific performance by Comdata of its obligations to us under our Merchant Agreement; (f) injunctive relief; (g) an order holding FleetCor jointly and severally liable and subject to all remedies we may be granted; and (h) damages, including statutory treble damages, attorneys' fees and costs, and further relief as the Court deems appropriate. At a hearing held on December 14, 2016, the Court denied our request for preliminary injunctive relief subject to Comdata's agreement to continue providing services under the Merchant Agreement pending a final ruling from the Court. On December 21, 2016, Comdata filed a counterclaim alleging that we defaulted under the RFID Agreement and that this alleged default allows Comdata to terminate both the RFID Agreement and the Merchant Agreement. In addition, beginning February 1, 2017 , Comdata unilaterally began to withhold increased fees from the transaction settlement payments due to us. During the three and six months ended June 30, 2017 , the difference between the withheld fees and the fees payable under the Merchant Agreement totaled $2,798 and $4,611 , respectively. We estimate that these fees, which are included in site level operating expenses in our statements of operations and comprehensive (loss) income, will average approximately $900 per month in excess of the fees payable by us to Comdata under the terms of our Merchant Agreement. On December 27, 2016, we filed a motion for partial judgment on the pleadings, which the Court denied at a hearing held on February 27, 2017, finding that the requested relief depended upon disputed facts to be determined at trial. A trial was held during the week of April 3, 2017. Post-trial briefing concluded on May 22, 2017, and post-trial argument was held on June 16, 2017; however, the specific timing of a ruling from the Court is uncertain. We believe that Comdata has wrongfully terminated the Merchant Agreement as a result of an alleged default under the RFID Agreement; and, in any event, we do not believe that we are in default of either the Merchant Agreement or the RFID Agreement. We believe that the claims against us are without merit. During the three and six months ended June 30, 2017 , we recognized litigation expenses related to this matter of $2,527 and $8,899 , respectively, which are included in selling, general and administrative expenses in our statements of operations and comprehensive (loss) income. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventory | Inventory Inventory consisted of the following: June 30, December 31, Nonfuel products $ 163,526 $ 167,813 Fuel products 33,605 36,332 Total inventory $ 197,131 $ 204,145 |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Reportable segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker, or decision making group, in deciding how to allocate resources to an individual segment and in assessing performance. Our separately reportable segments are travel centers and convenience stores. We measure our reportable segments' profitability based on site level gross margin in excess of site level operating expenses. See Note 1 above and Note 15 to the Notes to Consolidated Financial Statements included in Item 15 of our Annual Report for more information about our reportable segments. Three Months Ended June 30, 2017 Travel Convenience Corporate Consolidated Revenues: Fuel $ 848,289 $ 122,287 $ 19,689 $ 990,265 Nonfuel 421,741 71,884 10,471 504,096 Rent and royalties from franchisees 3,189 54 1,064 4,307 Total revenues 1,273,219 194,225 31,224 1,498,668 Site level gross margin in excess of site level operating expenses $ 122,942 $ 11,707 $ 2,651 $ 137,300 Corporate operating expenses: Selling, general and administrative $ 37,877 $ 37,877 Real estate rent 69,144 69,144 Depreciation and amortization 28,649 28,649 Income from operations 1,630 Acquisition costs 63 63 Interest expense, net 7,838 7,838 Income from equity investees 925 925 Loss before income taxes (5,346 ) Benefit for income taxes 2,380 2,380 Net loss (2,966 ) Less: net income for noncontrolling interests 47 Net loss attributable to common shareholders $ (3,013 ) Three Months Ended June 30, 2016 Travel Convenience Corporate Consolidated Revenues: Fuel $ 792,016 $ 119,193 $ 20,002 $ 931,211 Nonfuel 417,168 69,673 7,626 494,467 Rent and royalties from franchisees 3,176 57 1,097 4,330 Total revenues 1,212,360 188,923 28,725 1,430,008 Site level gross margin in excess of site level operating expenses $ 120,667 $ 10,568 $ 3,143 $ 134,378 Corporate operating expenses: Selling, general and administrative $ 36,009 $ 36,009 Real estate rent 64,736 64,736 Depreciation and amortization 21,322 21,322 Income from operations 12,311 Acquisition costs 1,092 1,092 Interest expense, net 6,740 6,740 Income from equity investees 1,091 1,091 Income before income taxes 5,570 Provision for income taxes (1,985 ) (1,985 ) Net income 3,585 Less: net income for noncontrolling interests 64 Net income attributable to common shareholders $ 3,521 Six Months Ended June 30, 2017 Travel Convenience Corporate Consolidated Revenues: Fuel $ 1,662,430 $ 225,993 $ 37,138 $ 1,925,561 Nonfuel 803,153 132,586 19,731 955,470 Rent and royalties from franchisees 6,218 108 2,077 8,403 Total revenues 2,471,801 358,687 58,946 2,889,434 Site level gross margin in excess of site level operating expenses $ 214,505 $ 17,070 $ 4,866 $ 236,441 Corporate operating expenses: Selling, general and administrative $ 78,689 $ 78,689 Real estate rent 137,143 137,143 Depreciation and amortization 60,449 60,449 Loss from operations (39,840 ) Acquisition costs 203 203 Interest expense, net 15,222 15,222 Income from equity investees 1,203 1,203 Loss before income taxes (54,062 ) Benefit for income taxes 21,695 21,695 Net loss (32,367 ) Less: net income for noncontrolling interests 70 Net loss attributable to common shareholders $ (32,437 ) Six Months Ended June 30, 2016 Travel Convenience Corporate Consolidated Revenues: Fuel $ 1,414,596 $ 191,824 $ 34,319 $ 1,640,739 Nonfuel 798,351 123,796 8,338 930,485 Rent and royalties from franchisees 7,318 191 1,097 8,606 Total revenues 2,220,265 315,811 43,754 2,579,830 Site level gross margin in excess of site level operating expenses $ 221,698 $ 14,939 $ 3,983 $ 240,620 Corporate operating expenses: Selling, general and administrative $ 66,975 $ 66,975 Real estate rent 128,265 128,265 Depreciation and amortization 41,847 41,847 Income from operations 3,533 Acquisition costs 2,061 2,061 Interest expense, net 13,561 13,561 Income from equity investees 2,038 2,038 Loss before income taxes (10,051 ) Benefit for income taxes 3,692 3,692 Net loss (6,359 ) Less: net income for noncontrolling interests 64 Net loss attributable to common shareholders $ (6,423 ) |
Business Description and Basi19
Business Description and Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Segment Reporting | We manage our business on the basis of two separately reportable segments, travel centers and convenience stores. See Note 12 for more information about our reportable segments. We have a single travel center located in a foreign country, Canada, that we do not consider material to our operations. |
Basis of Presentation | The accompanying consolidated financial statements are unaudited. These unaudited interim financial statements have been prepared in accordance with U.S. generally accepted accounting principles, or GAAP, applicable for interim financial statements. The disclosures presented do not include all the information necessary for complete financial statements in accordance with GAAP. These unaudited interim financial statements should be read in conjunction with the consolidated financial statements and notes contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2016 , or our Annual Report. In the opinion of our management, the accompanying consolidated financial statements include all adjustments, including normal recurring adjustments, considered necessary for a fair presentation. All intercompany transactions and balances have been eliminated. While our revenues are modestly seasonal, the quarterly variations in our operating results may reflect greater seasonal differences because our rent expense and certain other costs do not vary seasonally. For this and other reasons, our operating results for interim periods are not necessarily indicative of the results that may be expected for a full year. |
Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board, or the FASB, issued Accounting Standards Update 2014-09, Revenue from Contracts with Customers , or ASU 2014-09, which establishes a comprehensive revenue recognition standard under GAAP for almost all industries. This new standard will apply for annual periods beginning after December 15, 2017, including interim periods therein. To address implementation of ASU 2014-09 and evaluate its impact on our consolidated financial statements, we have developed a project plan in which we are utilizing a bottom up approach to evaluate our revenue streams and related internal controls. Since much of our revenue is initiated at the point of sale, we do not believe the implementation of this standard will have a material impact on our consolidated financial statements. We expect to complete our assessment, including selecting a transition method for adoption of this standard, during 2017. In February 2016, the FASB issued Accounting Standards Update 2016-02, Leases , which establishes a comprehensive lease standard under GAAP for virtually all industries. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight line basis over the term of the lease. A lessee is also required to record a right of use asset and a lease liability on the consolidated balance sheet for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales type leases, direct financing leases and operating leases. The new standard will apply for annual periods beginning after December 15, 2018, including interim periods therein, and requires modified retrospective application. Early adoption is permitted. We are in the process of evaluating the effects the adoption of this update may have on our consolidated financial statements. We believe the adoption of this update will have a material impact on our consolidated balance sheets due to the recognition of the lease rights and obligations as assets and liabilities. While the adoption of this standard will have no effect on the cash we pay under our lease agreements, we expect amounts within our statements of operations and comprehensive (loss) income will change materially. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation from net (loss) income attributable to common shareholders to net (loss) income available to common shareholders and the related earnings per share | The following table presents a reconciliation of net (loss) income attributable to common shareholders to net (loss) income available to common shareholders and the related earnings per share. Three Months Ended Six Months Ended 2017 2016 2017 2016 Net (loss) income attributable to common shareholders, as reported $ (3,013 ) $ 3,521 $ (32,437 ) $ (6,423 ) Less: net (loss) income attributable to participating securities (159 ) 174 (1,717 ) (315 ) Net (loss) income available to common shareholders $ (2,854 ) $ 3,347 $ (30,720 ) $ (6,108 ) Weighted average common shares (1) 37,450 36,921 37,438 36,907 Basic and diluted net (loss) income per common share $ (0.08 ) $ 0.09 $ (0.82 ) $ (0.17 ) (1) Excludes unvested shares awarded under our share award plan, which shares are considered participating securities because they participate equally in earnings and losses with all of our other common shares. The weighted average number of unvested shares outstanding for the three months ended June 30, 2017 and 2016 , was 2,090 and 1,903 , respectively. The weighted average number of unvested shares outstanding for the six months ended June 30, 2017 and 2016 , was 2,092 and 1,905 , respectively. |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | Goodwill consisted of the following: June 30, December 31, Travel center segment $ 17,252 $ 17,252 Convenience store segment 69,400 69,400 Corporate and other 3,046 1,890 Total goodwill $ 89,698 $ 88,542 |
Equity Investments (Tables)
Equity Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Summarized financial information for investment in equity affiliates | The following table sets forth summarized financial information of PTP. PTP's operating results are not consolidated with ours as we account for our PTP investment under the equity method. Three Months Ended Six Months Ended 2017 2016 2017 2016 Total revenues $ 30,991 $ 29,168 $ 57,232 $ 52,972 Cost of goods sold (excluding depreciation) 21,780 20,952 40,915 37,328 Operating income 3,138 3,082 4,747 5,489 Net income and comprehensive income 3,021 2,838 4,523 5,129 Our investments in equity affiliates, which are presented in our consolidated balance sheets in other noncurrent assets, and our proportional share of our investees' net income (loss) recognized in our consolidated statements of operations and comprehensive (loss) income were as follows: PTP Other (1) Total Investment balance: As of June 30, 2017 $ 23,358 $ 23,779 $ 47,137 As of December 31, 2016 21,657 24,097 45,754 Income (loss) from equity investments: Three months ended June 30, 2017 $ 1,154 $ (229 ) $ 925 Three months ended June 30, 2016 1,074 17 1,091 Six months ended June 30, 2017 1,701 (498 ) 1,203 Six months ended June 30, 2016 1,944 94 2,038 (1) Includes equity investments that are not individually material to our consolidated financial statements, including our investment in Affiliates Insurance Company, or AIC. See Note 9 for more information about our investment in AIC. |
HPT Leases (Tables)
HPT Leases (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Summary of various amounts related to the HPT Leases included in the consolidated balance sheets | The following table summarizes the various amounts related to the HPT Leases that are included in our consolidated balance sheets. June 30, December 31, Current HPT Leases liabilities: Accrued rent $ 23,402 $ 22,868 Sale leaseback financing obligation 673 484 Straight line rent accrual 2,458 2,458 Deferred gain 10,129 10,140 Deferred tenant improvements allowance 3,770 3,770 Total current HPT Leases liabilities $ 40,432 $ 39,720 Noncurrent HPT Leases liabilities: Deferred rent obligation $ 150,000 $ 150,000 Sale leaseback financing obligation 22,627 21,165 Straight line rent accrual 47,346 47,771 Deferred gain 116,117 121,331 Deferred tenant improvements allowance 39,702 41,587 Total noncurrent HPT Leases liabilities $ 375,792 $ 381,854 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory | Inventory consisted of the following: June 30, December 31, Nonfuel products $ 163,526 $ 167,813 Fuel products 33,605 36,332 Total inventory $ 197,131 $ 204,145 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting informationn | Three Months Ended June 30, 2017 Travel Convenience Corporate Consolidated Revenues: Fuel $ 848,289 $ 122,287 $ 19,689 $ 990,265 Nonfuel 421,741 71,884 10,471 504,096 Rent and royalties from franchisees 3,189 54 1,064 4,307 Total revenues 1,273,219 194,225 31,224 1,498,668 Site level gross margin in excess of site level operating expenses $ 122,942 $ 11,707 $ 2,651 $ 137,300 Corporate operating expenses: Selling, general and administrative $ 37,877 $ 37,877 Real estate rent 69,144 69,144 Depreciation and amortization 28,649 28,649 Income from operations 1,630 Acquisition costs 63 63 Interest expense, net 7,838 7,838 Income from equity investees 925 925 Loss before income taxes (5,346 ) Benefit for income taxes 2,380 2,380 Net loss (2,966 ) Less: net income for noncontrolling interests 47 Net loss attributable to common shareholders $ (3,013 ) Three Months Ended June 30, 2016 Travel Convenience Corporate Consolidated Revenues: Fuel $ 792,016 $ 119,193 $ 20,002 $ 931,211 Nonfuel 417,168 69,673 7,626 494,467 Rent and royalties from franchisees 3,176 57 1,097 4,330 Total revenues 1,212,360 188,923 28,725 1,430,008 Site level gross margin in excess of site level operating expenses $ 120,667 $ 10,568 $ 3,143 $ 134,378 Corporate operating expenses: Selling, general and administrative $ 36,009 $ 36,009 Real estate rent 64,736 64,736 Depreciation and amortization 21,322 21,322 Income from operations 12,311 Acquisition costs 1,092 1,092 Interest expense, net 6,740 6,740 Income from equity investees 1,091 1,091 Income before income taxes 5,570 Provision for income taxes (1,985 ) (1,985 ) Net income 3,585 Less: net income for noncontrolling interests 64 Net income attributable to common shareholders $ 3,521 Six Months Ended June 30, 2017 Travel Convenience Corporate Consolidated Revenues: Fuel $ 1,662,430 $ 225,993 $ 37,138 $ 1,925,561 Nonfuel 803,153 132,586 19,731 955,470 Rent and royalties from franchisees 6,218 108 2,077 8,403 Total revenues 2,471,801 358,687 58,946 2,889,434 Site level gross margin in excess of site level operating expenses $ 214,505 $ 17,070 $ 4,866 $ 236,441 Corporate operating expenses: Selling, general and administrative $ 78,689 $ 78,689 Real estate rent 137,143 137,143 Depreciation and amortization 60,449 60,449 Loss from operations (39,840 ) Acquisition costs 203 203 Interest expense, net 15,222 15,222 Income from equity investees 1,203 1,203 Loss before income taxes (54,062 ) Benefit for income taxes 21,695 21,695 Net loss (32,367 ) Less: net income for noncontrolling interests 70 Net loss attributable to common shareholders $ (32,437 ) Six Months Ended June 30, 2016 Travel Convenience Corporate Consolidated Revenues: Fuel $ 1,414,596 $ 191,824 $ 34,319 $ 1,640,739 Nonfuel 798,351 123,796 8,338 930,485 Rent and royalties from franchisees 7,318 191 1,097 8,606 Total revenues 2,220,265 315,811 43,754 2,579,830 Site level gross margin in excess of site level operating expenses $ 221,698 $ 14,939 $ 3,983 $ 240,620 Corporate operating expenses: Selling, general and administrative $ 66,975 $ 66,975 Real estate rent 128,265 128,265 Depreciation and amortization 41,847 41,847 Income from operations 3,533 Acquisition costs 2,061 2,061 Interest expense, net 13,561 13,561 Income from equity investees 2,038 2,038 Loss before income taxes (10,051 ) Benefit for income taxes 3,692 3,692 Net loss (6,359 ) Less: net income for noncontrolling interests 64 Net loss attributable to common shareholders $ (6,423 ) |
Business Description and Basi26
Business Description and Basis of Presentation - Business Description (Details) | 6 Months Ended |
Jun. 30, 2017storestaterestaurantconvenience_storetravel_centersegment | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reportable segments | segment | 2 |
Real Estate Properties [Line Items] | |
Number of stores | store | 539 |
Restaurants | |
Real Estate Properties [Line Items] | |
Number of states | state | 14 |
Number of stores owned | restaurant | 7 |
Number of stores leased | restaurant | 9 |
Restaurants | Joint venture | |
Real Estate Properties [Line Items] | |
Number of stores operated under joint venture | restaurant | 1 |
Restaurants | Franchisee operated sites | |
Real Estate Properties [Line Items] | |
Number of stores owned by franchisees or leased from others | restaurant | 33 |
Restaurants | QSL brand | |
Real Estate Properties [Line Items] | |
Number of restaurants | restaurant | 50 |
Travel centers | |
Real Estate Properties [Line Items] | |
Number of stores | 256 |
Number of states | state | 43 |
Number of stores owned | 29 |
Number of stores leased | 200 |
Travel centers | Joint venture | |
Real Estate Properties [Line Items] | |
Number of stores operated under joint venture | 2 |
Travel centers | Company operated sites | |
Real Estate Properties [Line Items] | |
Number of stores | 227 |
Travel centers | Franchisee operated sites | |
Real Estate Properties [Line Items] | |
Number of stores | 29 |
Number of stores owned by franchisees or leased from others | 25 |
Travel centers | Franchisee sites leased | |
Real Estate Properties [Line Items] | |
Number of stores | 4 |
Travel centers | TA brand | |
Real Estate Properties [Line Items] | |
Number of stores | 178 |
Travel centers | Petro brand | |
Real Estate Properties [Line Items] | |
Number of stores | 78 |
Convenience stores | |
Real Estate Properties [Line Items] | |
Number of states | state | 11 |
Number of stores owned | convenience_store | 198 |
Number of stores leased | convenience_store | 32 |
Convenience stores | Joint venture | |
Real Estate Properties [Line Items] | |
Number of stores operated under joint venture | convenience_store | 3 |
Convenience stores | Minit Mart brand | |
Real Estate Properties [Line Items] | |
Number of stores | convenience_store | 233 |
Business Description and Basi27
Business Description and Basis of Presentation - Fair Value Measurement (Details) - Senior Notes | Jun. 30, 2017USD ($) |
Level 1 input | |
Debt Instrument [Line Items] | |
Fair value of debt instrument | $ 313,820,000 |
8.25% Senior Notes due 2028 | |
Debt Instrument [Line Items] | |
Aggregate principal amount issued | $ 110,000,000 |
Interest rate (as a percent) | 8.25% |
8.00% Senior Notes due 2029 | |
Debt Instrument [Line Items] | |
Aggregate principal amount issued | $ 120,000,000 |
Interest rate (as a percent) | 8.00% |
8.00% Senior Notes due 2030 | |
Debt Instrument [Line Items] | |
Aggregate principal amount issued | $ 100,000,000 |
Interest rate (as a percent) | 8.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share [Abstract] | ||||
Net (loss) income attributable to common shareholders, as reported | $ (3,013) | $ 3,521 | $ (32,437) | $ (6,423) |
Less: net (loss) income attributable to participating securities | (159) | 174 | (1,717) | (315) |
Net (loss) income available to common shareholders | $ (2,854) | $ 3,347 | $ (30,720) | $ (6,108) |
Weighted average common shares (in shares) | 37,450 | 36,921 | 37,438 | 36,907 |
Basic and diluted net (loss) income per common share (in usd per share) | $ (0.08) | $ 0.09 | $ (0.82) | $ (0.17) |
Weighted average number of unvested shares outstanding (in shares) | 2,090 | 1,903 | 2,092 | 1,905 |
Acquisitions (Details)
Acquisitions (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Aug. 08, 2017USD ($)franchisee | Aug. 07, 2017travel_center | Jun. 30, 2017USD ($)franchiseerestaurant | |
Travel centers | Subsequent event | |||
Acquisitions | |||
Number of properties acquired | travel_center | 1 | ||
Number of franchisees | franchisee | 1 | ||
Aggregate purchase price | $ | $ 13,050 | ||
Restaurants | |||
Acquisitions | |||
Number of properties acquired | restaurant | 6 | ||
Number of franchisees | franchisee | 1 | ||
Aggregate purchase price | $ | $ 6,110 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Goodwill [Line Items] | ||
Total goodwill | $ 89,698 | $ 88,542 |
Reportable segments | Travel center segment | ||
Goodwill [Line Items] | ||
Total goodwill | 17,252 | 17,252 |
Reportable segments | Convenience store segement | ||
Goodwill [Line Items] | ||
Total goodwill | 69,400 | 69,400 |
Corporate and other | ||
Goodwill [Line Items] | ||
Total goodwill | $ 3,046 | $ 1,890 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2017USD ($)restaurant | |
Goodwill [Line Items] | |
Increase in goodwill due to acquisition of six standalone restaurants | $ | $ 1,156 |
Restaurants | |
Goodwill [Line Items] | |
Number of properties acquired | restaurant | 6 |
Equity Investments - Investment
Equity Investments - Investments in Equity Affiliates Financial Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance | $ 47,137 | $ 47,137 | $ 45,754 | ||
Income (loss) from equity investments | 925 | $ 1,091 | 1,203 | $ 2,038 | |
PTP | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance | 23,358 | 23,358 | 21,657 | ||
Income (loss) from equity investments | 1,154 | 1,074 | 1,701 | 1,944 | |
Other | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Investment balance | 23,779 | 23,779 | $ 24,097 | ||
Income (loss) from equity investments | $ (229) | $ 17 | $ (498) | $ 94 |
Equity Investments - Petro Trav
Equity Investments - Petro Travel Plaza Holdings LLC (Details) | Jun. 30, 2017storerestaurantconvenience_storetravel_center |
Schedule of Equity Method Investments [Line Items] | |
Number of stores | store | 539 |
PTP | |
Schedule of Equity Method Investments [Line Items] | |
Ownership interest (as a percent) | 40.00% |
Restaurants | PTP | |
Schedule of Equity Method Investments [Line Items] | |
Number of stores | restaurant | 1 |
Travel centers | |
Schedule of Equity Method Investments [Line Items] | |
Number of stores | 256 |
Travel centers | PTP | |
Schedule of Equity Method Investments [Line Items] | |
Number of stores | 2 |
Convenience stores | PTP | |
Schedule of Equity Method Investments [Line Items] | |
Number of stores | convenience_store | 3 |
Equity Investments - PTP Summar
Equity Investments - PTP Summarized Financial Information (Details) - PTP - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Schedule of Equity Method Investments [Line Items] | ||||
Total revenues | $ 30,991 | $ 29,168 | $ 57,232 | $ 52,972 |
Cost of goods sold (excluding depreciation) | 21,780 | 20,952 | 40,915 | 37,328 |
Operating income | 3,138 | 3,082 | 4,747 | 5,489 |
Net income and comprehensive income | $ 3,021 | $ 2,838 | $ 4,523 | $ 5,129 |
HPT Leases - Narrative (Details
HPT Leases - Narrative (Details) $ in Thousands | Jun. 30, 2017USD ($)propertylease | May 03, 2017USD ($)travel_center | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)propertylease | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)propertylease | Jun. 30, 2016USD ($) |
Related Party Transaction [Line Items] | |||||||
Rent expense under the HPT Leases | $ 69,144 | $ 64,736 | $ 137,143 | $ 128,265 | |||
Aggregate selling price | 76,048 | 120,961 | |||||
HPT | Principal landlord and largest shareholder | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate selling price | 50,403 | 55,059 | |||||
Increase in minimum annual rent | 4,284 | 4,680 | |||||
HPT | Principal landlord and largest shareholder | Travel centers | |||||||
Related Party Transaction [Line Items] | |||||||
Aggregate selling price | $ 27,602 | ||||||
Increase in minimum annual rent | $ 2,346 | ||||||
Number of development properties sold | travel_center | 1 | ||||||
HPT | Principal landlord and largest shareholder | Leasehold improvements | |||||||
Related Party Transaction [Line Items] | |||||||
Improvement assets to be purchased for an increase in rent | $ 21,016 | $ 21,016 | $ 21,016 | ||||
HPT | Principal landlord and largest shareholder | HPT Leases | |||||||
Related Party Transaction [Line Items] | |||||||
Number of sites subject to lease | property | 199 | 199 | 199 | ||||
Number of leases | lease | 5 | 5 | 5 | ||||
Rent expense under the HPT Leases | $ 65,908 | 61,684 | $ 130,859 | 122,513 | |||
Minimum annual rent | $ 278,626 | ||||||
Percentage rent incurred | $ 346 | 283 | $ 1,001 | 529 | |||
HPT | Principal landlord and largest shareholder | TA Leases | |||||||
Related Party Transaction [Line Items] | |||||||
Number of leases | lease | 4 | 4 | 4 | ||||
HPT | Principal landlord and largest shareholder | Petro Lease | |||||||
Related Party Transaction [Line Items] | |||||||
Number of leases | lease | 1 | 1 | 1 | ||||
Percentage rent waived | $ 61 | $ 372 | |||||
Cumulative percentage rent waived | $ 2,500 |
HPT Leases - Summary of Various
HPT Leases - Summary of Various Amounts Related to the HPT Leases Included in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Related Party Transaction [Line Items] | ||
Total current HPT Leases liabilities | $ 40,432 | $ 39,720 |
Total noncurrent HPT Leases liabilities | 375,792 | 381,854 |
HPT | Principal landlord and largest shareholder | ||
Related Party Transaction [Line Items] | ||
Accrued rent | 23,402 | 22,868 |
Sale leaseback financing obligation | 673 | 484 |
Straight line rent accrual | 2,458 | 2,458 |
Deferred gain | 10,129 | 10,140 |
Deferred tenant improvements allowance | 3,770 | 3,770 |
Total current HPT Leases liabilities | 40,432 | 39,720 |
Deferred rent obligation | 150,000 | 150,000 |
Sale leaseback financing obligation | 22,627 | 21,165 |
Straight line rent accrual | 47,346 | 47,771 |
Deferred gain | 116,117 | 121,331 |
Deferred tenant improvements allowance | 39,702 | 41,587 |
Total noncurrent HPT Leases liabilities | $ 375,792 | $ 381,854 |
Business and Property Managem37
Business and Property Management Agreements with RMR (Details) - RMR - Affiliated entity - Selling, general and administrative expenses - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Related Party Transaction [Line Items] | ||||
Share in internal audit costs | $ 68 | $ 67 | $ 135 | $ 134 |
Business and property management agreement fees | ||||
Related Party Transaction [Line Items] | ||||
Business management fees | $ 3,541 | $ 3,580 | $ 6,865 | $ 6,813 |
Related Party Transactions - Re
Related Party Transactions - Relationship with HPT (Details) shares in Thousands | Jun. 30, 2017propertyshares | Dec. 31, 2016shares |
Related Party Transaction [Line Items] | ||
Common shares, shares outstanding (in shares) | 39,556 | 39,523 |
Principal landlord and largest shareholder | HPT | ||
Related Party Transaction [Line Items] | ||
Common shares, shares outstanding (in shares) | 3,420 | |
Percentage of outstanding common shares owned | 8.60% | |
Principal landlord and largest shareholder | HPT | HPT Leases | ||
Related Party Transaction [Line Items] | ||
Number of sites subject to lease | property | 199 |
Related Party Transactions - 39
Related Party Transactions - Relationship with AIC (Details) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017USD ($)company | Dec. 31, 2016USD ($) | |
Related Party Transaction [Line Items] | ||
Carrying value of investment | $ 47,137 | $ 45,754 |
AIC | Equity method investee | ||
Related Party Transaction [Line Items] | ||
Annual premium for property insurance | 1,672 | |
Carrying value of investment | $ 7,799 | $ 7,116 |
RMR | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Number of companies managed by RMR | company | 5 |
Contingencies - Environmental C
Contingencies - Environmental Contingencies (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |
Oct. 31, 2015violation | Feb. 28, 2014USD ($) | Jun. 30, 2017USD ($) | |
Commitments and contingencies | |||
Loss contingency insurance limit for liabilities per incident | $ 10,000 | ||
Loss contingency insurance limit for liabilities | 25,000 | ||
Litigation by California State Water Resources Control Board | |||
Commitments and contingencies | |||
Loss contingency liability | 1,000 | ||
Settlement amount | $ 1,800 | ||
Suspended penalties | 1,000 | ||
Maximum verified costs | $ 2,000 | ||
Number of alleged violations | violation | 5 | ||
Environmental Issue | |||
Commitments and contingencies | |||
Total recorded liabilities | 3,652 | ||
Expected recoveries of future expenditures | 805 | ||
Loss contingency liability | $ 2,847 |
Contingencies - Other Disputes
Contingencies - Other Disputes (Details) - Litigation with FleetCor and Comdata - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Sep. 30, 2017 | |
Other Commitments [Line Items] | |||
Total transaction fees withheld | $ 2,798 | $ 4,611 | |
Litigation costs | $ 2,527 | $ 8,899 | |
Scenario, Forecast [Member] | |||
Other Commitments [Line Items] | |||
Approximate transaction fees withheld per month | $ 900 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Inventory [Line Items] | ||
Total inventory | $ 197,131 | $ 204,145 |
Nonfuel products | ||
Inventory [Line Items] | ||
Total inventory | 163,526 | 167,813 |
Fuel products | ||
Inventory [Line Items] | ||
Total inventory | $ 33,605 | $ 36,332 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Revenues: | ||||
Fuel | $ 990,265 | $ 931,211 | $ 1,925,561 | $ 1,640,739 |
Nonfuel | 504,096 | 494,467 | 955,470 | 930,485 |
Rent and royalties from franchisees | 4,307 | 4,330 | 8,403 | 8,606 |
Total revenues | 1,498,668 | 1,430,008 | 2,889,434 | 2,579,830 |
Site level gross margin in excess of site level operating expenses | 137,300 | 134,378 | 236,441 | 240,620 |
Selling, general and administrative | 37,877 | 36,009 | 78,689 | 66,975 |
Real estate rent | 69,144 | 64,736 | 137,143 | 128,265 |
Depreciation and amortization | 28,649 | 21,322 | 60,449 | 41,847 |
Income (loss) from operations | 1,630 | 12,311 | (39,840) | 3,533 |
Acquisition costs | 63 | 1,092 | 203 | 2,061 |
Interest expense, net | 7,838 | 6,740 | 15,222 | 13,561 |
Income from equity investees | 925 | 1,091 | 1,203 | 2,038 |
(Loss) income before income taxes | (5,346) | 5,570 | (54,062) | (10,051) |
Benefit (provision) for income taxes | 2,380 | (1,985) | 21,695 | 3,692 |
Net (loss) income | (2,966) | 3,585 | (32,367) | (6,359) |
Less: net income for noncontrolling interests | 47 | 64 | 70 | 64 |
Net (loss) income attributable to common shareholders | (3,013) | 3,521 | (32,437) | (6,423) |
Reportable Segments | Travel centers | ||||
Revenues: | ||||
Fuel | 848,289 | 792,016 | 1,662,430 | 1,414,596 |
Nonfuel | 421,741 | 417,168 | 803,153 | 798,351 |
Rent and royalties from franchisees | 3,189 | 3,176 | 6,218 | 7,318 |
Total revenues | 1,273,219 | 1,212,360 | 2,471,801 | 2,220,265 |
Site level gross margin in excess of site level operating expenses | 122,942 | 120,667 | 214,505 | 221,698 |
Reportable Segments | Convenience stores | ||||
Revenues: | ||||
Fuel | 122,287 | 119,193 | 225,993 | 191,824 |
Nonfuel | 71,884 | 69,673 | 132,586 | 123,796 |
Rent and royalties from franchisees | 54 | 57 | 108 | 191 |
Total revenues | 194,225 | 188,923 | 358,687 | 315,811 |
Site level gross margin in excess of site level operating expenses | 11,707 | 10,568 | 17,070 | 14,939 |
Corporate and Other | ||||
Revenues: | ||||
Fuel | 19,689 | 20,002 | 37,138 | 34,319 |
Nonfuel | 10,471 | 7,626 | 19,731 | 8,338 |
Rent and royalties from franchisees | 1,064 | 1,097 | 2,077 | 1,097 |
Total revenues | 31,224 | 28,725 | 58,946 | 43,754 |
Site level gross margin in excess of site level operating expenses | 2,651 | 3,143 | 4,866 | 3,983 |
Selling, general and administrative | 37,877 | 36,009 | 78,689 | 66,975 |
Real estate rent | 69,144 | 64,736 | 137,143 | 128,265 |
Depreciation and amortization | 28,649 | 21,322 | 60,449 | 41,847 |
Acquisition costs | 63 | 1,092 | 203 | 2,061 |
Interest expense, net | 7,838 | 6,740 | 15,222 | 13,561 |
Income from equity investees | 925 | 1,091 | 1,203 | 2,038 |
Benefit (provision) for income taxes | $ 2,380 | $ (1,985) | $ 21,695 | $ 3,692 |