TA - Earnings call transcript Q2 2020 | TravelCenters of America Inc

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Operator

Good morning. Welcome to TravelCenters of America's Second Quarter 2020 Financial Results Conference Call. Please note this event is being recorded. [Operator Instructions]. I would now like to turn the conference over to Kristen Brown, Director of Investor Relations. ahead. go Please

Kristin Brown

morning, Good Thank everyone. you.

Richards today, We will forward-looking Chief Peter remarks Q&A. the the beliefs Private and securities XXXX federal Barry Reform of TA's Securities call Officer present meaning today's of Crage within on conference These TA's forward-looking Litigation Jon contains August President expectations laws. and Officer with Executive Financial Pertchik, from Chief analyst statements begin followed statements X, of XXXX. call Act our as for and Today's by are based

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

could concerning of section or is filings to Relations in of our factors forward-looking information to to that the cautioned place Investors any by not TA's available not Additional Securities statement. Commission occur reliance that SEC's undue are our Investor website, contained at Exchange the upon are the cause with referring forward-looking website. and charge free

can to quarter XXXX, non-GAAP noted. on During amounts are reconciliation XXXX call, qualitative regarding assumed available the EBITDA, fuel this comments unless website. to in gross found the to comparable be GAAP The we of operating any of the as to quarter be most of that financial on our will as margin. performance, these well income and/or in and second and measures, discussing otherwise press compared call, implied including regard today's adjusted financial as second measures should stated be The net EBITDA, be adjusted adjusted non-GAAP release measures our

over to I'll is of to conference you call prior that that, turn Finally, TA. With Jon, of without like I prohibited recording consent and call retransmission the would the you. the remind today's written

Jonathan Pertchik

Thanks, to interest us and you pleased quarter performance company-wide increased business the management generated top and our line despite leadership the thank say EBITDA increase adverse net proud income, economy. joining Kristin. everyone, pandemic. prior-year our prompt that year-over-year organization, XXXX broader net in discipline the and for our as for by plan the a newly-constituted report improved EBITDA COVID-XX historical showing with well the managing is of implementing and senior second XX.X% the driven on in Good to effects in I'm expenses, over to in performance executing increase broader improvement as organization. The combined XX.X% transformation dramatic a was your throughout TA. second very earliest our COVID-XX morning, I'm quarter in of furloughs a on on our despite and income signs by improvements team, response

transformational While true with these achieve results has manifest way to improvements have quarterly of begun groundwork to which the impact in but make, during set our off quarter, progress some a discuss operational changes second our we full strategic the plan I results show and of long are positive believe further forward. made I minute, to the will we drive which start to the wanted we and for a go we to evidence to plan, not of time. will have some the moving

focus which historical many growth, years. a April, with a SG&A had implemented growth right-sizing in reorganization on significantly for outpaced revenue we First, strategic late

$XX.X reduction corporate declining growing unsustainable million. environment. been approximately reduction a As TA's corresponding volume calls, a and SG&A overall performance about an in annual The I've in grossly XXXX, rate sale of annual top at XXX of compounded growth line corporate since previous resulted a talked of SG&A headcount X% had outpacing on reorganization fuel in

several creating fresh combined subject overall new as enhancing well of procurement addition, as leaders improved our change and can-do strategic attitudes change as hospitality, organization matter Officer. end, well visibility Vice the of corporate on a we operational as well key and century a fuel, to brought experience, most are team as team beginning To efficiencies, as key agents. attacking bring In These right perspective. a with development, By on as way with Information and to new They are in areas around reorganization that Senior our significantly, create close Chief we leaders and our assembling value. performance. outside drive serve was and improved new designed to to Presidents accountability, and the to new better-running leadership financial

approximately to for Our In as nearly necessary and maintenance company million to expenditures nearly successfully other property XX carry and complete, which in distinct pursue. position have equity raised for playbook as our With mission, backdrop, July, includes to IT to update cushion deferred to and hold. early we begun of corporate vision primarily catch-up many decided a these raise to create deferred liquidity $XX intended to the foundation a well initiatives transformation values purposes. fully these this general fund and initiatives, capital create formally equity take we allowing to work initiatives and offering, we systems, to an is out conditions,

it a Through improving focus to to XXXX, has the a necessary sensitive the capital important have and positioning important to was been QX some company of time. quarter. results realize efficiency. the a the and such despite dilutive we over shareholder and long-term And for plan, improvements able was important an for net pandemic. XX.X% execution we long-term focused initiatives financial of will of of material global EBITDA income forward, Many XX.X% for XXXX company on in early provided the create operational QX place raise, not execution. The put company going the an on and the value. are part success to company quarter, was the effect While and team

path. the shown has XXXX QX beginning However, we are down right

portions second which pleased we able of were U.S. results of of the the achieve different presented our our were areas what impacted by varying with we the and corresponding to to degrees. to economy, major COVID-XX despite business quarter, challenges in shutdown Turning the

Our remained fuel same our the to a decrease pandemic a and volume overall travel May. X.X% our Despite during activity And better sales trucking by the purchasing are a margin that to environment, driven to the quarter as approach and our fuel private revealed our by evidence period competitors have increased diesel national primarily pandemic. the improving as significantly in volume tax levels and reported favorable of April diesel as biodiesel to volumes July result well post-QX gross trend and for purchasing. in XX.X% anecdotal consumer of ahead fact, line due decreased year, partly averages these prior-year. reductions, than volumes Fuel prior credit, from pricing throughout changes versus

the is bottoms-up for year role year-over-year has being rate our approach significantly. of and creating business, the the were established shut pandemic. services by nonfuel decline offset months' full-service ensure in impacted significantly shortfall Post-QX, revenue VP restaurants. prior third results. compliance shortfall early approximately the positive the have truck employees. performance followed. results. prior sales the gross to change side pandemic, site-by-site the and This Truck orders a service, The for during service trend and restaurants counts relatively better service month year are was most X,XXX prior responded X result may decision in company to restaurants remains full revealing on contributed early full same most by top than a new of more reviews improvement June, the the that service reduced of a quarter, a decisions necessary to due company positive quick itself. These of Through the in show beginning service the the leading second quarter, declines an below been year to our service first margin favorable Sharp a the work processes be net result to so oil year-over-year and EBITDA Within but mid-April our from temporarily period. that truck furlough difficult performs to than restaurants On in EBITDA the significantly improved run for basis focus income difficult as to truck

reducing continues as in more improvement growing, strong DEF, demand or inventory June from to to we costs. menu sharpest more XXX fluid as diesel cautiously to retired better has benefit TA May, June, in and and full trucks Also, controlling business a offerings model taken DEF on carefully to was the Through our marked stay-in-place store was and revenue years. started with to order than also exhaust orders in year higher-margin service continue for August of for pre-XXXX XXXX and popular items, government-mandated X, retail focus and are impact restaurants, Our opportunity to streamline lift. expect have April and Overall, in division our the closures labor requirements the year. demand each reopened prior

remains Finally, a going forward. expansion, important our which steps an aggressive toward network on priority word first

the the of locations XXXX; open X We have additional And end signed beginning X operations XXXX; during X franchise the by new year-to-date. XXXX. have XX agreements will anticipate since we began of opened

locations, very the for application discussion proud process. quarter. But are In the and and addition, with broader the in impact with company conclude, operators XX and in negotiating of sites of XX positive we an of currently shown negotiation later other agreements additional they to X I'm various and stages another diligence franchise are centers, engaged through travel the have phases approximately of

can in on would time to in financial our you carrying continue navigate stockholder for dedication, mission-vision And that, and values, hard value. call I'll the heroes and their range We the long-term team, to and as professional and our we the thank also plan hand over detail. as for transformational in have our the all drivers to Peter? focus to this and unprecedented serve I quarter's fleet with as out now through ranks, generate and work allowing many well employees to discuss franchisees, place, Peter capital our together. results uncertain us our the customers our our to initiatives from

Peter Crage

you, everyone. and good Thank Jon, morning,

As given months the the last very our have results pleased second Jon mentioned, we in brought. several particularly with challenges the are quarter, that

year. net per quarter, generated million the last of to or income compared million $X.X share $X.XX share $X.XX we $X.X per For second or

compared $X an several net of EBITDA the The we approximately last the $X.X one-time quarter, income Adjusted year. second adjusted million compared $X.X items, income generated net or the for $XX.X compared to XX.X% expense was to in decline of to of a prior the million to year. increased and Excluding nonfuel general increase in in adjusted quarter as million operating adjusted by million increase was margin increased million EBITDA reductions margin. margin, offset year. administrative gross primarily fuel in gross by prior partially gross or selling, and due site-level $XX.X expense, XX.X% Fuel

Excluding from increased $X.X a fuel prior gross the tax benefit in credit by quarter, May. purchasing compared more as million million biodiesel and X.X% blenders $X.X margin in to the favorable April primarily due or a to environment, year fuel the federal

retail X.X% XX% when due gross year. a revenues truck fuel as to service XX.X% While a and primarily of by in for our inclusive our declined revenues million temporary the in was as credit a consumer of and in X.X% last gallon declined credit per fuel closure year. decrease the and April May. $XX.X quarter declines diesel compared businesses XX.X% at partially XX.X% the decrease and and sales decrease biodiesel limitation services due pandemic, over last were or restaurants, a increased tax quarter, revenues. These decreased The result the and margin blenders the standalone trucking activity were the TravelCenter fuel compared to federal or well to increase by Nonfuel services volume and during and fluid in as both exhaust store excluding of offset as travel primarily

began governments result as store saw to revenues to revenues year. decreased quarter began reopening compared about we decreased Nonfuel the permanent the And restaurants, due pandemic. standalone to and stay-in-place the of closures primarily as business as operating as franchisees June. truck from franchised pandemic. As temporary well to and expense of the previously in services last these offset in the margin franchise last XX.X% the or prior standalone year the or by royalties restaurants we and from full X the compared of decrease a the signs restaurants closure decision our made after to field of million second of gross in million June certain or lift orders, retail million employees we $XX service service $XX.X mentioned. response the TravelCenter of standalone approximately franchise a impact nonfuel in Rents year. as XX.X% our $X.X the XX by decreased in in X decline Site-level brought on and quarter by partially was to restaurants result as furlough difficult of XX.X%, by that as operations The began necessary but franchise X,XXX closures improvement

by and corporate Additionally, reduced to X% XXX were offset as employees million by for such offset Plan employees adequate and reductions Real expense the associated were costs, at as nonfuel of decreased approximately expenses. decreased due positions travel-related part as reduction and as of costs the marketing decrease compared quarter supplies. in centers the Plan. SG&A year. quarter or to response XXX a decrease expense field work paid The in a a to The percentage last utilities approximately partially revenues last primarily who estate pandemic $X.X staffing. of $X.X rent the we was $XXX,XXX quarter. with non-labor These late in for of the decrease of furloughing the result bonuses of the Reorganization result or year. Reorganization the April primarily elimination by certain approximately in million rent cash reductions the largely maintenance, to compared decrease continued to during to These was the nonrecurring pandemic and ensure a by our travel in to X.X% the

from to Steak expense a rate & million goodwill at quarterly our Given Depreciation primarily to recognized XX.X%, $XX $X our and by expect rent increased we continue a Lube estate expense of amortization approximately million QSL run current or our to million. or real leasing arrangements, due impairment business. Quaker $X charge

During that the in indicators in and of impairment the with the expenses, decline goodwill conjunction excess second of determined that with of impairment, operating QSL the gross associated for for the margin in quarter, we site-level impact were site-level pandemic, evaluated business.

an So QSL. assessment performed we accordingly, goodwill of the of impairment

Turning to $XXX.X million. XX, at balance June our moment, was balance sheet a for cash our

We as near-term have on and we have July debt our maturities. no amounts million outstanding facility no XX, credit XXXX, of $XXX

collected $XX.X the approximately the cash quarter, collected. be during remaining million refunds second federal in to credit related biodiesel to of of expectations, We only with the million well $XX.X have million our tax ahead blenders $X.X

that opportunities owned attractive we truck X standalone of and restaurants financed centers, debt. to in June Greenwich As were We travel additional locations. year a by of financings unencumbered four in XXXX, West rate, location successfully standalone XX, XX on evaluate and this service owned for facility February an at continue

capital we Lastly, plan $XX flexibility. and approximately also million. have XXXX our the invested year-to-date our quarter, financial in XXXX deferred nonessential the in all expenditures $XX.X order bringing to capital to as We've total $XX.X investment be revised million, capital during preserve projects we to to million maintain

consistent our part concludes deployed on now closed systems the funds, have be we're and infrastructure, of in year. including And raise, our of those potentially facilities with we considering improve prepared that IT now to our equity use projects operator, to could ready latter these this that and take our that are questions. remarks, we However, carefully planned

Operator

[Operator Instructions].

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

Bryan Maher

A questions my couple of on end.

correct? the services truck over that last June is service, clarify, Let's retail all for were start year's the June, June store with numbers. up year-over-year To and

Jonathan Pertchik

have that? you do Peter,

Peter Crage

truck in question. close. I that still the saw example, a in so timeframe, year. restaurants, Jon saw up. in June yes, would not hopefully, restaurants improvement, We improvement service, as the restaurants for In we say opened no, in up answers mentioned, number your had But a over that sequential last they of the particularly we as

Jonathan Pertchik

seen to to between us, just July, for we add, sure quarter. in through trend April in which results May appears Bryan, the Jon. areas improving we've other saw improvements. it's and nonfuel Putting The of the for aside June, gaming, early and line full into improvement restaurants And the were the In Other end continue. that service

Bryan Maher

And have many full there Okay. How still service you were the are said reopened that think restaurants, moving that to on now. closed? I XXX then

Jonathan Pertchik

open, us open of pointed closed. labor in turn, which menu the costs, are in through are XX% gives out, terms gets we XX% a are more on, give color, And on much some very are ones That just that are as items, limited more open in to open little limited hours us, places. benefits roughly most

then So demand obviously, more as not. regularly the accordingly. changes carefully, to efficiently, are open open, in are them at, or very, we're making we're monitor and that we and both closed. we both approximately treatment running demand open And But and look our of very but half and state ability half also very to changes ability

Bryan Maher

And just and the them, then or at with reopen with a or are you upon closing were given IHOP reopening opened? your had there based portfolio speeding had And are money-losers, menus? thoughts full the the may Okay. change that that in all up the experience clear in such they all, the that way, these what restaurants conversions, service restaurants experience not, open that in not them a or the on one have dramatic first different you

Jonathan Pertchik

That's question, Bryan. a great

using it's it to gave been the other this see -- transformation this guy, or you're off much us a I something sort to horrible opportunity to of like cautiously. and get in turn very every what we're and on happens. say opportunity not don?t opportunity given often while the the And or learn learn. carefully COVID, and But the for opportunity country turnaround As you that and respect, focused

need of maybe down think to the to looking continuing made no need say, better, it's path restaurants, pandemic things, We're sort re-engaging, so things, this about more bounce for looking around and a IHOP. what will brands in we're can and of of some But We variety continuing and sure We rigor we focus sure now still I'd I'm formal the that. operate IHOP. with measuring to with premature effect know potential say, operate that Right pace to of and choices worse around at are seems the of carefully and other we at very not as we any just get including we respect what obviously, timing it at to close lot right discipline, a And differently. yet. where very now, areas is a not and looking areas. watching carefully more get improve, lot with very I plan

we're continuing carefully of we're we So obviously that very sort watching where as are. learn to from

And quite haven't feeling speaking, inventory well. significantly final, the and differently so have past. going that decisions, we ones will particularly as menu waste. we when tell had I as we've have there's formal in any labor, again, There's more more with to a a lot more lot I selling a you restaurants won't items, many we aren't a more operate made a many have you but There's discipline, And our lot forward, discipline. manage can items lot more generally very

minimum differently a be very the forward full side. will we going on operating So at restaurant service

Bryan Maher

with you?ve Okay. you lower sustainably about your kind X,XXX-plus or employees? size on or ultimately of employees. furloughed that And back? you?ve employees safe furloughed to end and of brought there reopened? say the do What's half reopened XX% it of me everything restaurants, those is leads if when is there, think, guess respect my the thought next question is level timing those back And some XX% bringing up XX% with to to that you I

Jonathan Pertchik

approximate a like operate fewer will real less and now, too And just that's about again, early It's to X,XXX on people again, that. But we I now. think And say to are I fewer fundamental to it's open, right believe anything hard hours, people that. have still with while open/not menu Sure. of with line all punch get furlough; again, number we right we it's half-and-half the open items.

been we the why disproportionate, people it's brought than slightly open that less brought back back. -- of the of there's versus -- the little have restaurants it's numbers, that's a number number So --

Bryan Maher

wanted And then to the moving just to on clarify. G&A, Okay. I

we XXX those to know then getting already back them furloughs. and eliminations, So some I the on? position another of all there XXX have assuming I'm was How started are on? corporate layered guess back come

Jonathan Pertchik

Yes.

and people where gaming. the and to the exclusively, on related starting demand this, and full so service mostly restaurants identified to not respect with mostly made XXX we but And with those began we choices based demand,

And because just we've I off have bring Barry, in some number so in the back. places, that demand sitting top back of I I I wouldn?t that, have how I confidence some have we my as seen in of venture come the some I when. know and please in. And and with then don?t But the Peter number to front know. don't many know or you don?t that back on come head me who of don?t XXX number chime demand back come a a don't know, want give I behind guess if me. and have dictates

Peter Crage

on No, don't some though still We're -- we're obviously, are furlough. exact careful. still being number. an know There being I

Bryan Maher

level? but last having then about you can QX sustainably for of we you consistently on see work XX.X% you reports, through XXXX, from this from last XX.X% that And with But of and firm, -- the me could for prior been with a XXXX thoughts in expenses do been into down of running get give that site-level year, XX% me. at your prior spot the a And sure move annual as XQ know sense magnitude? Okay. operating operating below-XX% at sore numbers I'm to you reading any kind and expenses joining level has that for site-level

Jonathan Pertchik

Sure.

to We've we've We're know now with lot that, and of just start said, Obviously, SG&A. site-level corporate And of of a me not Let that your benefit attacked, through that rigor, of SG&A. some that's what focus this, of part we're question, Bryan. the it you sort the system. you box. with repeating enjoying checked done sort our starting put attention coursing now but to

hard it and million there, think Peter and that $X we've have wrong you if Peter's $XXX I'm and billion; that visibility is how over create tracked order only that managed to and site-level be us least. As around now. a P&L historically, and of to those things not changing the a best approaches SG&A, me priority about way been to the can with at visibility burden expenses really And but in massive visible That's enough at And correct very creating ability team now. and on site-level thinking organization it's it see changing the big gives little had granular magnitude we're we're site-level a see them, I for it's without expenses a that's look able to track P&L.

also So And going into suggests really is for with right Peter's find spot visibility also some I with dig big to a balancing it's historically. is you, visibility, such a me, working thinking to getting But frustration mini-sore a some number. about it's -- considering, help on because haven't number we're it we're and We're me. Bryan, to to significant had we're that's agree without possibly we we're team such make now. really findings. outside we're little evaluating, The big something that fact the a going

really to outside Peter, lines what Peter's gets -- get quotes to who site-level and not to we add then did on good there. how a evaluating the things all these really along focused separately, at very of too choices but and we're on we're in early on potentially we to inform we yet, it dig help focused how supplemental team some corporate. of wrapping creating what's the SG&A is will to to and maybe on focused that somewhat into say help us there are "right-size" -- together, anything just So it it. put visibility sort one-time kind of that normal; It's new that? I'll we're

Peter Crage

this Jon would decent that here appropriate. We've had We metric, platform. on profitability. and made some what said identifying just I burning inroads Yes, that's emphasize percentage, preserved obviously that

and business and owners steps, also happen, the a costs analysis, but then that we these that. making accountability those only for the when which responsible, the go will a have can that that. after can we we over months, system. several on we identifying And As of to few individual keep through feel next not out back weeks that report happen better Only next will

Bryan Maher

Okay. given And official what give in the lodging, you're to saw being I'll one recovery COVID, July, slowdown question saw which on us on having can in analyst kind the current pickup what any with relates take you seeing what Can covering we with you was thoughts as company, us more of a a and if the of ended in what liberty it only cases just a at July time. with share which you the in in TA July, anything? here,

Jonathan Pertchik

great. that's Yes,

this line. earlier shared I So trend

business-by-business. much nonfuel board, we Just this improvements across answer first set within-quarter, pretty within-quarter, to of all, the to saw stage your July, question about the

June, May appears was from nonfuel, gaming, sort was excluding in again, an and to pretty of then putting service uptick uptick, that, -- consistently to an April Other full us. there there which from I'm So across for although

and the other early gaming, continuing full shown July. again, the July, which that Other, line, signs businesses level, not on in results, of restaurants, sort FSRs, business-by-business, than the aside into service putting trend have Moving doing prior-year improving, preliminary better but appears actually just actually the of or sales

are period, service, So truck meaning the showing July. same the low-positives to prior-year store, QSR,

sales news nice seeing, continue. knowing that'll that us upward is that allowing that'll uncertain. least just and COVID a are line just hard I'm We're I'm right line. a now that in to trend all positive talking that's making comment, for not staying -- still it's politicized -- about as But at is see context seen anybody to certain top because we've trend to suggest And to say not places, if necessarily demand, spikes what mean in again, going within sustain that heavily this But So well. going to choices for apolitical company line. the we're it's good so

Bryan Maher

thanks. me. for Great, all That's

Operator

ahead. question Please Sullivan BTIG. of Jim comes next The go from

Jim Sullivan

environment. are systems that probably unreliable scratchy in in that and Apologize to the the had was But pretty if There us nice approach the the you release, margin. I understand purchasing due boost you much here can fuel signal of the to how the a attributable the approach to new margin, this a and you primarily new was on I pricing? to help from also XX% But pricing. question wondered to cited get the New if margin England, fuel increase today. was just

Jonathan Pertchik

right pretty going and Thanks, storm the to and don't I'm you're know hit the we're maybe out not that now. parse Hopefully, that was moment. made historically, part there way the back, person on, was handling decisions sure by to up a were same led I in pricing. entire I'm changes hi. And and was know turn hard our of Peter safe able it to by day-to-day Jim, -- I I made business. we in and in months early pricing the with know heading learned England. I many other Barry who who New an

gave I'm unbundled attention. the an was And and before so we its behind know Peter right tell. impact. dedicated began, getting due was with in started, portion or that you to favorable to a And quarter it had market. when COVID more we just sure full-time not if or out disagree, related what chime me to that But if able we're a there's versus parse Barry, that

Peter Crage

it's Peter. Jon, No,

able not that. do are We to

the initiatives we correlate market, volatility as Going the would it to area. fuel in some But particularly be forward no, that's obviously, soon. deploy the our difficult in hope,

Jonathan Pertchik

. just other one I . . mention quick to wanted And

Jim Sullivan

ahead. go Sorry,

Jonathan Pertchik

a I it's place a to get decisions. -- of in we're in point using very on haven't time, Just of we one we done that at long a make -- some that's going We've we repository time, least take as a is to we -- data easily say data sense to a is fundamental focused measuring haven't time company. measuring that of. quick stuff, areas and long And make shouldn?t never results, sitting where quickly have a in good can the never sort

that bit be hamstrung forever. So case we're little a won't today; the

Jim Sullivan

prices of Is dissipated risen? impact it positive Jon, the changed fuel has however, purchasing the assume, as that fuel to or have environment fair

Jonathan Pertchik

the through way of the I started, change quarter. That two-thirds roughly think,

May, the got a really of bit not -- April June, we around that. and And little like we we I'm of received benefit since. sort So into dissipated and if it's ever as it were bounced mistaken,

Jim Sullivan

Okay.

to that and due And of margin, second strategies. over to nonfuel marketing year-over-year. it Moving slightly pricing declined quarter part the was the in

lower And should perhaps expect nonfuel so is, trend below to question we margins be gross the my XX% going year-over-year, forward? and

Jonathan Pertchik

that? Peter, on do want in you jump to

Peter Crage

given not that needed rate your Sure, percentage. is but the to margin. can we in dramatic But costs, on the on the see believe maintain able the decline leverage we a And to the Jim, down, affect decline margin will way operating margin. the to question way we up. I a cut were declining to, at revenue have that answer don?t great in no, revenue, We dramatic the sure.

is goal to to only costs, not though mentioned, team of obviously, and our the decisions margins with our making and goal, further Jon then OpEx, time. Our on margins net these over as course, get margins, focusing on work preserving to new increase regard management margins, those along,

So we are. that's where

Jonathan Pertchik

And add, another if Jim, could, to let just that. point I me

a procurement. function, even leadership have We procurement procurement do function. a We now. entirely didn't consolidated centralized, have We new in

leader, Kelly We are incredible just have a c-store, couple QSRs, heads -- have from an both etc. -- these which of there; months Kevin who Hospitality, ago a leader, new includes Jamie we Hubbard,

take just is yield not of to we're got, July, whatever forces your sort that driving nonfuel cause we've And optimizing will price year-over-year, that leadership there was again, some balance lead will business think of on on but volume, the the between areas side, great yield. choices I to optimizing and alone, time question Last, our this as -- those that'll, we're I looking and I'll driving while say Fuel, and of margins, for of which least, some not focused into diesel making really countervailing we of really particularly are, sacrificing improve. through SVP equipped while sort get think really think, other volume to through their new stuff. with us I

the point, context. that to more stores, sales more diesel nonfuel and of margin; but our more purchase. volume give leadership more full all we or your -- with a know the fill question that's just obviously, So drive we volume, people Again, new the was I

A barely is procurement just head my started. getting long like point team later. new and May think X. our about fuel, I them of of that is leadership couple, senior a enough Most our came here month got

getting really we're those changing through make choices just we So how started terms of in new leaders.

Jim Sullivan

Appreciate the were Okay. it the that Plan. $X.X in incurred then quarter And the costs on color, also was noted nonrecurring that Jon. the the Reorg of for release, item million costs, SG&A of in

be is, of in So are additional costs my second respect the will half year, over or done? the you question that there any

Jonathan Pertchik

. Peter think I . . those, So

Peter Crage

. the . Yes, .

Jonathan Pertchik

Go Go ahead, ahead. Peter.

Peter Crage

small a dollars, very amount, couple Yes, largely past thousand we're hundred of a that. maybe but

Jim Sullivan

very I you. Okay, that. good. appreciate Thank

Operator

Chief to session. Officer, question-and-answer the to conference any remarks. over turn I concludes Pertchik, closing would This Executive our Jon like for back

Jonathan Pertchik

Again, TA, thank your and interest a Bye, great morning. Have you your this in bye. for day. attention

Operator

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

disconnect. You may now

TravelCenters of America (TA) 5 Aug 202020 Q2 Earnings call transcript