TA - Earnings call transcript Q2 2018 | TravelCenters of America Inc

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Operator

Good morning. And welcome to the TravelCenters Second Quarter 2018 Financial Results Conference Call. All participants will be in a listen-only mode [Operator Instructions]. After today’s presentation, there will be an opportunity to ask questions [Operator Instructions]. Please note that this event is being recorded. to of conference Investor like Strohacker, to now Director Senior Relations. would turn over the Katie I Please go ahead.

Katie Strohacker

Thank you, good morning.

We based beliefs followed Officer, securities with Officer, Financial conference will remarks from questions. sell-side contains Act of We’ll call Reform expectations Myers. TA’s call begin also Private Securities Today’s Chief Officer laws. have Bill forward-looking Andy by Richards; today, XXXX. Barry forward-looking These Rebholz, Litigation Operating Chief and Chief August analysts' today’s time statements present within the meaning on statements of as are and and the federal TA’s of X, XXXX Executive

any not not made statements to other statements or their no materially the than revise undertakes today Forward-looking these law. by implied as those differ occur included release and statements. to may guaranteed in occur. implications Actual forward-looking revision TA from they results may are forward-looking obligation and required publicly to or

Investors you, call in our that, And figures a of Web not our non-GAAP available will net And adjusted undue Andy. of charge I’ll cautioned call we conference Additional today’s site, information and by the this over www.ta-petro.com. free to that Relations to not loss without available of concerning with you finally, SEC’s statements written the discussing are metrics loss, with our and are Exchange factors release. is of of cause net Commission recording Securities at call is that forward-looking in prohibited filings contained to that like to www.sec.gov, TA’s could the forward-looking TA. at site reconciliation to retransmission referring EBITDA, section and EBITDA place statements. turn the any the reliance adjusted Web the remind prior upon non-GAAP including press Investor consent these I’d during or are to occur be financial

Andy Rebholz

per per the for compares we $XX.X this Katie. loss results our which to included a $XX.X share XXXX, provided items. EBITDA non-GAAP Thank of morning’s should performance share, net this $X.X reported everybody. million. loss of financial second for press million The measures of effects help and welcome notable financial last the Good quarter or and between $X.XX quarter or of Earlier year. in you XXXX and morning, million release $XX.X XXXX of the $X.XX morning, of net of the you, periods without a million EBITDA certain compare second This

the million over the and store convenient but net date born million impair measures second what those excess to quarter, will our ruling in Comdata $X.XX XXXX retirement tax segment signs to $XX.X impairment EBTIDA with past second expense to several minutes, with quarter, unusual we of the items second our speaking $X.X formalizes out transaction $XX.X and adjusted expense fees. and segment few the change convenient an compensation compared administrative $XX.X positive measures amounts excess of not adjusted $XX.X more out effect. an the The result, the our EBITDA reduction items the the change results for in pleased results Bill including has with court million the quarters. to store or million of adjusted $X.XX adjusted Among the in to our quarter. dispute net of a per million notable income litigation results adjusted our these and of expense and compared of see EBITDA For in adjusted expectations. per share XXXX quarter $X.X adjusted of was we million charge traction. million the reported $X.X related cash $X.X for $X.XX loss or in expenses first and second to share included were that the from discuss or in the in the selling our former in a goodwill improved gain expense of Other plans CEO. approximately In depth Comdata impairment agreement and in notable were our to resulting items after met to related quarter share XXXX been sites per this included business litigation and to That extra XXXX generally have pending several million share EBITDA the from based slightly $XXX,XXX quarter continue general

to side last was and occurring. X.X%, efforts down First, was year headwinds the year-to-date To and year-to-date continued stronger same fuel fuel fuel side last purchasing time some our is result, freight quarter same was about around inline this efficiency side environment same X% This quarter’s this nine-tenths and year context side a while negative that fuel same provide fuel this pricing our led despite of with volume marketing volume fuel due due of down competitive are change improvement a volume to change increased for to this demand and strategies. percent. has that

nonfuel side same increased increased revenue X% Second, nonfuel margin while same side X.X%.

nonfuel increased a primarily X.X% center due basis. revenues side X.X% to same a travel increase Our on

gross were nonfuel basis These a already basis XXX to in TA’s other percentage efforts programs truck strong consolidated increased and programs programs Our expand quarter. service margin certain which on productive. this points marketing improved

as combined onsite saw operating saved management the primarily for increases total application IT inspite implementing project closing as consolidated basis work labor same applicant of is orders forecast with software in the installed our We in during to $XXX,XXX of of we Third, of X.X% accordingly. Reserve-It! staff unproductive work and last improved revenues approximately restaurants multiyear unit XX.X% RoadSquad compared and in market. a as compared orders better XX.X% of tier period a a sites to IT part on new in rising points Fourth, to XXX percentage site year The revenues. the mobile same restaurant prior allowing year, X.X% by parking schedule that reservations maintenance a nonfuel level managers -- result sales sales, basis, hours. expense of our

I from site function accounting quarter. discussed savings project centralization We’re also the some seeing last

this Keep during For about the SG&A were to first the operating in us project, of and the that cost as function over XX% a fully $XXX,XXX site the which expect XX% $XXX,XXX mind second million site this initiative for points at build annual or activities. about quarters. in when project second XX approximately with of the count corporate basis generate expenses expense will accounting net level savings implemented. varying these we sites, $X.X savings generated June complete completed we take out site in we and quarter, on XX, By cost

have quarter credit market stores site volume, me the in decline approximately margin convenience the better strategy from The period we in XX% due began quarter. card remains saw the Whether current improve stores, enter our declines resulted investment of to discuss XX with Barry in more these increase a loyalty this and that market stores performance in Among are excess and accounted the last. will doing performance the Mart, this level we but results returns in site adjusted still to margin to I'm site believe due are first a transaction convenience June our last of a associated the Competitive margin year's fees the quarter to Kentucky, in in in level decline of operating X.X% declines expenses. a of X.X% our in July, for at result level hurdle. and in will quarter. year-over-year affecting enough continue For and increases decline of The at management site track level program. XXXX by remain Rewards a to significant at this these will standalone headwinds particular and convenience reasonable respectively we this to a stores, GoGo lead be that with to improvement to Minit to declined during a Since of we expenses. gross from those quarter. level of question confident income in since stores third XX%, The margin all and a in things had new slight been gross prices results relative adjusted XX quarter revenues in operating last quarter, in we year-over-year Site of site to in headwinds of complete and expenses, our the the performance positive. XXXX. entire impacts nonfuel compared operating to sales are to net increase expenses net gross the the EBITDA warrants operating that signs relative Implementation sites which of gross competitor in was competition XXX% fuel combat be improvement level primarily our an early and market segment rollout post site the continuing in the in that point compared level preliminary and this second answered and time. fuel excess on introduced was for highlights in stores, the and improve XXXX, that moment, fuel standalone our have the will detail

and our program existing continue commercial assistance roadside RoadSquad loyalty make Minit business such plans of and network, programs, initiatives completing stores. our maintenance, we’ll of sites our ahead, our and with to Looking at the most Rewards mobile GoGo current the as on-site Mart rollout tire call-center the through

have so to and network. our addition, to believe, time also In now believe we center the travel opportunities the we’ve is expand do do we so. commenced to We plan

have new practice were time, certain additional centers be freight brand and maturation in customers that trucking of cases, as presence funneled highways our traditional could many evolving, requiring distribution and warrants if TA are the are of being Further, travel or as even site of routes secondary state our we many cases, to online some on changing, continues, instead recognize in In that petro spending large-format built network our our and a delivery the us solely are For freight our has corridors. patterns volume many expanded told routes full-service the accommodate on been center. interstate highways, or always historically. don't secondary

be processes be amenities truck a to develop who to world. logistics regional the this offer to full-service customers large-format and footprint the opportunities to trucking to their we or generally infrastructure the to our This at has responsive distribution will restaurant. themselves center including changing travel a centers, us needed of remain offer relevant is and sites continue will relevant larger believe the smaller within we services be called smaller our a network typically to stop they to that road, some autonomous but know and and are may supplier so what that will potential or that continue all meet the come evolve, smaller format Express today's customers. Express down a table transportation opportunities and concept, trucking led As to future electric service TA TA companies, realize sit typically exclude we a prefer, that have physical down many that shipper

travel the the years is gaps acquisitions, revisit to so those of where near gaps franchising enables One of reasons travel of the have highways network those fill much available TA to our through of slowed or center two land to parcels interstate expansion relative centers XX in and/or large acre for Introduction portfolio we lack XX development. us full-service that sale. attempt Express past and areas

trucking franchising done can free travel reenergized to much better a our last with franchising count, cash the believe have but is for site program serve the than typical of our flow in grow great introduction required smaller we that in customers and and Express company operated and our TA's EBITDA years, be several avenues TA We our large-format investment little centers. growth arena

report to but will for as our have in on recently regarding the And quarters Barry some commenced coming more funds provide are only have we initiatives, potential these these will hold. operations. color excited now, We we they

Barry Richards

and good morning, Andy everybody. Thanks,

freight strong travel see center to TravelCenters increase our from led quarter, overall modestly. operations continue volumes signs up We and which segment newly ramp trends to acquired sites from positive this

key Our efforts new successful aggregator in our services total service are to were reaching quarter. highs. to growth We and combined accounts truck experienced this volume sell which more outsized related

bids possible can and when six sales with year strong, This more service truck accounts versus was as loyalty quarter, travel against impact More were fleets. to margin margins competitive nearly gross fuel are truck previously or and the prices top volume cost segment increased volumes, fuel, headwinds fuel for X% penny. second Fuel increasing our businesses side sales down approximately center $X.X travel they a XX% declined services competing as million, having and had and quarter larger were impacted purchased by center program Fuel a prior continued competition X%. seeking which so very up in be tires street the ways this due gross and at by efficiency TA's on X% reduce XXXX larger smaller approximately to quarter. and same aggregator

offset efforts this helped quarter. purchasing headwinds certain Our

focus to can that continue today the the help We on and solutions loss of indirectly, products customers headwinds. and these best

market universe For customers. this marketing our of [ph] us, more deeply existing means to to expanding customers homely

to customers, gained Regarding and our products efforts a during broader market our existing services array to of quarter. this our we traction

strong versus the program, second growth on-site total trucks quarter, Andy last truck XXX. XXXX on-site our service in quarter. to XX up acceleration added bringing the our our We as experience and orders just mentioned, from at quarter XX.X% work Looking second were

operating is repair the customers And business. resources added for last This who the grow helping for new percentage examples due devote significantly were emergency total customers. business, are see the margin revenues other call-center value they level quarter's XXX. services our us and so can during RoadSquad bringing quarter, site is these Importantly, outsourcing These customers nearly to relative increased operating additions six-week and faster support, expenses. which core attracting their than to call-center to primarily certain demand

a TA’s us truck provide commercial good also solutions center program. customers, we commercial rethread dealer to program and multiple TA’s products weeks, In customer non-traditional example, base opened expand full dealers. businesses agreements their commercial successfully Rethreading is believe sales it about others network. of this, for and network a customer with are tire retread line for tire a rethread efforts up segments. with for Ohio of just gap tire few component industries thousands of commercial annual multiple we in fills our with tire we’re including new demand we Our fleets, discussions local tire Green, customer tire tire TA’s landed we in TA’s to continued seeing of units a having opens dealers, common and potential with and we Mid-July, and in active conducting where Bowling business customer Goodyear a to new In segment service

group, Restaurant continues. to rationalize Looking our service full offering at our TA efforts our key

dining closed X.X% conversions margin, revenues to quarter, second the or to The taking due and which this respectively, reduce were same efforts a the to as increased. EBITDA operating continue restaurants These year-over-year to expenses quarter. were For site to we Andy earlier, and X.X% rebranding helped have on casual operating QSRs. overall that racial improve in by the three noted expense weigh our and period restaurant nonfuel second respectively for gross X.X%, and labor level service we’ve revenues. and down X.X% expenses nonfuel actions other full has nonfuel for

nonfuel same level a our shifting with due generate sales management and of and stores declines saw leases we increased stores, a convenience due food managed and whose standalone quarter our three margin stores. in to associated similar nonfuel gross opted Mark closure our site to this to renew, retail sales. We the carwash a to to prepared not competition due Minit of pricing our mix revenues Regarding higher to and we of fuel volume

phases weeks seen loyalty store since XX and convenience and members the year. allow fuel We program In Early be to lift days broad program have same these This Minit the a the X% Minit and Mart We’ve July’s register today. live, points sweepstakes. and program our and data access at merchandise cards we GoGo comparing gone pump, roll in cards For stores. stores provide July, nonfuel will club have redemptions performance sales has when to which indicators number completed out by distributed a in segment, program with positive. redeem store XXX include for to brand few customers Minit marketing Mart in tracking scheduled will initial or the of will surpassed in we’re whom first been will September. introduced certain earn who stores Mart, a the actively early with for over expectations in Rewards XX,XXX their a and an the almost we’ve at

points. transaction for average non-loyalty nearly customers size Bill And over I'll the to of card Further, total our Our rates call new turn is we’re redemption using seeing for and the clubs rewards twice his remarks. the for transactions. great now

Bill Myers

you, Thank everyone. morning Barry good and

we revenue. by per points, gallon, prior nonfuel new what increased by well ended fuel as included in percentage XXX among the I $XX to revenue our us and first our cents revenues nonfuel XXXX that we impact our from but Before nonfuel new for this fuel which, this the per reclassify which you to to years. our basis to related a a I’d margin we’ve gross margin remind financial first results, as identifies of revenue to from that We've the things, second awards nonfuel in in nonfuel X.X supplement on XXXX fuel year. years gross recognition reported of revenue adopted the program quarter compared certain XXXX reclassified margin gross statements standard revenue, wanted required cents discounts press the XXXX, to the of quarter accounting morning's discounts quarter both our and gallon for gross million well In discuss by release, has other as margin loyalty those fuel for fuel decreased standard, and as

totaling earlier. loss no the certain $X.XX a compensation a by consolidated a Andy had gross of share-based same earlier. periods. new per site but million not expense were quarter increase increases in in net the on $XX.X a and related Impacting additional We've in payment per million, recognized and the both mentioned of $XX.X centralization were in impairment remainder $X.X by the our for adopting unusual $X.X executive by the an this with the through legal our connection in as a in in million. will acquisitions periods value reimbursements that the general in were outstripped we've charge when charge amounts million fuel charge goodwill XXXX site $X.X investments. during of meet $X.XX or retirement goodwill we the improved, adjusted slightly million up Adjusted fair nonfuel of costs completed estimated but to in results is excluded, related in to The which reminder, those this $XX.X share such capital to investments. ruling and margin loss the net the perspective, the convenience goodwill accounting million resulting amounts, to the carrying as did Andy and primarily convenience loss changes administrative $X.X compared million this $XX.X level generally $XXX,XXX both, total any litigation that applied as amount from locations increase them interest of failing The by the to of projections which Executive From second expense primarily one-time decline Comdata including to expenses value. acquired quarter mentioned that in our expenses nearly primarily assessment personnel final resulted related due decreased XXXX incremental equity a had from XXXX, to segment Chief in with salary expense related expense net cash discount combined the and excluding Comdata unusual officer other a well items is its of tied in as business certain increased impairment our the gross general and expense results results million the of $X.X store appeal and As effect Depreciation administrative component affected assumptions million future litigation to impairment share. margin. initiative the in the agreement retirements increase affect or legal the an eliminate second second of quarter of as segment XXXX and store segment. second and our exceeded to valuation $XXX,XXX $X such the EBITDA increases and quarter the The due in selling, rate former higher led the items million Officer. of assessment. with rent for standard reflects Selling,

we'll our fuel XX,XXX to X% or gross center gallons results strategies. gross you million in decrease fuel offset increased due and effects In of pricing larger having travel it by decreased volume by to and loyalty volume second our the in to program TA's did on Now, gains fuel sales due two continued partially declined and segment of $X.X same take competition margin X.X volumes than the gallons primarily marketing the XXXX by TA's site Fuel fuel the million quarter. a segments. increased fuel and impact the efficiency margin quarter by second XXXX

gallons XXXX second TA's as operating and primarily XX.X% fuel million same X.X% X.X% the decreased XXXX by $XX.X in compared contributed The level fuel the primarily in of gross As in XXXX ongoing. as result margin percentage decreased compared the an moment from in increase excess XXXX Nonfuel margin second mix a or of in centers level XXXX in $XX.X in increased resulted sales as in second change as of second gross increase XXXX by level quarter, nonfuel gross nonfuel second grew by a second nonfuel site XX.X% a basis the margin quarter gross second volume. level the volume to X.X store program margin truck to was increased segment gross due sales quarter a X.X% decreased products TA's versus service a margin sites. the primarily revenues Site by decrease the $X.X of due competition, XX.X% quarter XXXX second excess the sold. the quarter, in for $XXX,XXX to in of result the Of revenues basis nonfuel site by to on X.X% not the million quarter. operating due in XXXX on or gross revenues as due on decreased primarily three of same million Andy in the the margin site or basis. the to to percentage decline service or the million due travel prior approximately leases. XXXX of quarter. $XXX,XXX decrease year the compared and Non-fuel XXXX primarily $XXX,XXX X.X% growth was Nonfuel quarter X.X% same the expenses quarter did million service in the noted lease initiatives. Site XXXX that second the In second expenses of ago, closing by the we site truck Barry with this marketing fuel renew compared the or from to X.X% in Truck quarter sites second largely increase positive gross the as second quarter to decreased quarter almost expansion in site increase second nonfuel to convenience a a in the or to second compared gross margin where quarter. to XXXX to certain the programs impact in XX.X% margin XXXX XX.X% margin in XX.X% that the quarter percentage nonfuel due gross same to the XXXX X.X% quarter are $X compared percentage in increase of mentioned

Turning $XXX available facility. travel owned was approximately by seven and million standalone centers, credit and are had standalone liquidity XXX stores XX to at debt. XX our matters, that balance under revolving cash $XX.X our investment million and convenience We we our June unencumbered restaurants

and During site of HPT. we $XX.X capital million invested expenditures of quarter sold to $XX.X improvements million the

million improvements $XXX contemplates our approximately investments of HPT. we Operator, expenditures to million remarks. sale-leaseback of capital of That to site questions. capital sustaining of are million $XX $XX XXXX Our and which investment take plan approximately concludes ready now includes approximately prepared the capital

Operator

the begin [Operator We question will now session. Instructions]. answer and

Maher ahead. The from Please Bryan FBR. B. Riley first question go comes at

Bryan Maher

Good morning.

Just to clarify the real quick. CapEx

with the XX right? that Is you think XX said XXX and I to going HPT.

Bill Myers

XXX. No. It was

Bryan Maher

And going? so, where's the rest

Bill Myers

to into projects that's be sites sites that like of things fall XXX things adding the of after category. and rebrandings would XX In that retread be certain in The acquisitions rest like center sustaining restaurant, growth talked these growth going or either the at the like the we've RoadSquad conversions the and would existing on-site projects about, that. would new truck,

Bryan Maher

business? enough And retreading around are in toe there? country? one think needs? acquisition your you just Or acquisitions tire that of do to you made, putting on going tire Okay. water that Or then the other expand about that you centers are is satisfy the you're to to the your retreading How you thinking

Andy Rebholz

Yes.

there our us it new the bring because and toe travel something buy we've retreading new we and offer It's that, actual it different our way what but fair things water sold retread? three think for us, they retread centers, characterize always like bit. into customers many to-date. tires we around mentioned, historically. – as to How done that have to we've two and unable new us believe will to that can or are throughout a control us times it. add a related been the that's and customer of trucking is as it Normally it Barry it be brings tire of certain and tires the the them but dipping of segment manage little tire mean that they benefits for I to retread probably a from it's companies their like I

and positive you the thus So far this hope results are for we're trying go. how if and will give us

goes this certainly for yes, us. well, not facility the country that cover that sufficient retread to one is Assuming

that or them XXX more our all mile XXX to up I think of that but planning we would tires site, in of think from the it radius about if a sites from future. to I facility are we can open this in well be supply goes yes

Bryan Maher

historically been has percentage the discounted retread? you to what new tires? of relative sell And And as the price those tires is what that

Andy Rebholz

the but on handle have today are see you expect don't most the trailers running can on percentage, tires. highway retreaded you that I on

Bryan Maher

So it's substantial?

Andy Rebholz

is. It

Bryan Maher

over for a accounting with do rollout accounting to site corporate, kind about you cost? move for cost a level we of reduction the moving site expect site you level same there. What minute and people labor of as And you labor are handling then talk continue who rate kind seeing Can to employment initiative are it from that the employment on out before? in kind commence tightened

Andy Rebholz

each there perform let that XX the take at functions in or that labor our whatever sites. adding XXX centralized cost number regard centers people in some and with being are all the the to we'll seeing Barry accounting we country to to accounting and you positions then site the certain headquarter, or work talk functions, maybe is, things so travel those site site of do people have be function at pressure if at I'll centralization, of headquarters these the across at some XX to person people, specifically something eliminating we're But last the and will. Couple what first level

To is will with elsewhere. transferred XXX% the be beings net But the other Now current that may at sites turnover staff that that a rules the at into mean, result in million. be sites savings sites at well in those I range. net of X.X the human or hourly actual positions, the the remember

to savings But than other through go position of point. some do a chart will eliminating want the if comes ahead Barry? I kind of lot that at attrition org So, you think you

Barry Richards

Sure. Yes.

minimum there pressures we've far our obviously many, sick where of the pretty it holding good job ratios leave, paid steady, anywhere labor -- market we're out alluded done if and going manage at from in effect, wage from tight you So we're as increases all a tip are seen elimination laws but that to many are credit into the states having is something sites. to

Bryan Maher

a it range of put You labor on cost X%? level, X%, percentage X%, expected the Is increases. site

Barry Richards

with that Do know don't you? that detail. I have I one

Bill Myers

Yes.

minimum thing kind and to-date taxes most stuff. level also sorts things, wage that's the business. that pressures those on part of frankly total think the site the I XXXX same versus probably and affected affected that directly of of year the basis included costs, and and change labor far and also but the of And XXXX be benefits all payroll the it which by though kind what other of in a has wages by is

the As that service growing the past restaurant store growth. or if people we've we're takes it a the support business truck business to the more to in talked lesser extent business,

percentage I'm all site six up the is this for same labor So and that months X.X%. our say to of about covers

Bryan Maher

or runs think me be out. Gogo with on of decision to the business matter year Do making how before cut Store a you see I that or want Great. lastly And is decision? it going that you'll bait of on decision kind Andy, and you a then that more for fish be know just from quarters? C Or you that in make to

Andy Rebholz

No.

closer I think we'll that its able that where headed. to be tell to former latter the we're the than

Bryan Maher

Okay. Thanks. all from That's me.

Andy Rebholz

Thanks, Bryan.

Operator

Please Craig-Hallum. from comes ahead. Dyer question go next Steve The of

Steve Dyer

seeing you're and in what on to maybe gross about share QX? QX in July should you we profit per If could that relative how think gallon

Andy Rebholz

Yes.

margin July so on think the what second that to we're similar fairly what is saw we the in quarter. I far in seeing

of the they've in rising has quarter, that are or And a that same continue off, the whereas relationship the that the margin suffered that than expect think a you're that same know is And not comparing to general period. right things quarter, as this fuel the third exist now our with to probably what for case, happen others been eventually continue soon something so case but purchasing tougher I in that are with it's the year reporting that going it last year to continue I that effect. if year the course whole year gallon this think I I one month relative I would say environment a continuation been the crude we're had same. is prior that of seeing that's year in bets the all industry oil this to here and could -- when crazy in environment a will reason the per bit cost past. prior way little

Steve Dyer

the get QX? to go you be sort would or similar at anticipate of as margin to QX tougher we So,

Andy Rebholz

easier way the more softened looks then it's of things become it to think a July similar the if But same, I as same. tougher, to the in that be opposed would bit could is go now, really -- more start it market more My just more then feeling I getting the been through skyrocket bit tougher just it for us. as of way it's the but – prices if we think again, is

Steve Dyer

that and something TA that how think targeted between a is I we, new couple about on whether the years? then, And interesting, think guess, of maybe it franchise I concept a And be looking express out would or locations should else mix maybe then opportunity? company Okay.

Andy Rebholz

have process. franchise early of fast be We on or operated. how many it's any us add sites very company targets and really hard those for we operated don't percentage will expectations this what either in We versus -- would and

the faster we at we center we grow in stop that things as need and of where were of both who we we years. we over industry the a and we players continue was customers big think management team few what fleet the have part have Board otherwise, to that on I two growing looking travel an been truck have conversations Directors And recognize of other our to the than business. past with -- that going

good recognize part well-run company. but desire only things many to just them. not two that we've possible. it's the as do we always help themselves but recognized The to to operate own us operated think concept a not for and only with mean across good frankly the that country can a franchising can I our I for express aligning see TA operators think love the independently history such like centers help it's can has investors, We not company not and bottom-line it, our work part franchising like they're and of that results. franchising with that we and have We a the owned not been sites, together not that the of I that, express, we there really think own, of prongs that would those that but customers our either I and of there strategy TA interested them can And go we've recent with developing a that see this brands grow both and good time. here us two our out are been think our over maybe been in more it's historically help but in are way business of travel of real I work well two and help with the way together

around So we've talking can it's but again. it's had say – very start we've people some there got I to acquisitions both to network energized growing the early, here about been folks and and out franchising

Steve Dyer

Thank Great. you.

Andy Rebholz

Thanks, Steve.

Operator

Please Ben The next Brownlow at Raymond comes from James. question ahead. go

Ben Brownlow

morning. Good Hi,

Just not thinking to you targeting, over the that I we one format. nine on guess CapEx longer following range, ROIC mean, the last think you us, stores? this remainder two it question, is up over TA of as this give initial a anything of three can next can us? but six to term months on Is store anything I express sort year the or prototype just of give Any should the

Andy Rebholz

a are and some have frankly repair TA. them prototype. sites our fair to I some that TA. its of couple of say are cases first fine in we immediate operate did of or that the that prototype. Ben, build one don't in the think still I said, the moving years have we were currently were they're that own have They those think, I -- we the things. And first – are and are where type sites forward. be the currently three mean, that we next of or -- be can small in And parcel will truck term probably an in hey, of And perspective, express can some that of parcels these have the search and developed months. probably tuning a branded -- that But TA few sites, one time branded is that I happening characteristics we'll of the and of out a acreage locations sites too ago the test we we the don't. few think from see to those a at Two be of two sometime have acquisitions cases our four here will smaller sitdown restaurants, we in

started at kind trail, again is the and on be other from we return but moving the small are sites starts we've full take done in TA had those. that them They been Minit convenience that as all now site forward acquired really frankly Mart way. of stops back we Mart look to or So third we acquiring the going of the characteristics or Colorado. on think I we kind really for look large at stores, to when And branded I I don't rebranding perspective, rebranding prepared remember Minit compared size XX when those express and positive. of the After it. kind I very much those for the travel not that of we're return back And think at truck say that two own there be wise to we'll of them and to truck hadn't five that again wise fall few either think back size site the percentage, bought four, see we're and certain build a we'll just than acquisition we range, Sites parameters how center somewhere the it The less – will to reasons going go mean, I branded the of of brand and is acquired been when they operate a new what variety truck number anymore. and a that the when what them. a are EBITDA acquisitions we that XXXX fourth we another, amenities and one. site cost is year currently we to the in any the mean, getting since other to ago you of within it's format stops. years the anything it building paid small be be we these be we a this than for will sort a of a I service takes of mean

what targets we sense, or And projects. return. kind XX% of And of or forward. makes targets goals are roughly going doing an had those historically going know our kinds goals to You given for those of change an been aren’t average that have

Ben Brownlow

the the those nonfuel lift but for X% for a same thanks they Okay, C XX store the that, around same for color. points the correctly it’s kind data the And of gave so sites us initial store store in chain? I loyalty had that if Kentucky. know July you just can early, in program, give sales, I you hear Did sales and several on

Andy Rebholz

what not C stores yet that the final that for month we've seen -- the fairly but information don't of at for on in correctly, I'm results the X%. sales frankly, have weeks sales. lift don't I'm three aren’t in heard definitely inside of in a You XX was -- that, the those other -- I was we the roughly certain July the that same-store July X% those

Ben Brownlow

think kind me, said seeing in are second bring Are that one of casual one that lift the those the you XX% the targeting three XX right. does What you you. year-to-date? helpful. conversions, you from year to for quarter. restaurant conversions? from full on And revenue number Thank this still still I last All That’s and

Andy Rebholz

the remains Yes, same. target the

And on revenue a seeing hit conversions. yes, to the track lift We’re we complete are those.

Ben Brownlow

the and first many in converted how Okay, quarter? were

Andy Rebholz

don't I front I’m know, sorry. I it in have don't me, of

Ben Brownlow

Great. Thanks All right. guys.

Andy Rebholz

Ben. Thanks,

Operator

concludes question-and-answer over remarks. like to now any would our back This the I Andy Rebholz closing turn for conference session. to

Andy Rebholz

everybody thank I for in care. us interest today TA. Take your Again, you. joining Thank and for

Operator

has conference presentation. for The today's attending concluded. Thank you now

disconnect. You may now

TravelCenters of America (TA) 6 Aug 182018 Q2 Earnings call transcript