TravelCenters reports Q2 adjusted EPS 5c, consensus 29c
Reports Q2 revenue $1.84B, consensus $1.86B. Andrew J. Rebholz, TA's CEO, said: "During the 2018 second quarter, we continued to produce positive results from the growth and cost savings initiatives we have been pursuing. In our travel centers segment, each of nonfuel revenues and nonfuel gross margin grew at 5.5% and 6.7%, respectively, as compared to the 2017 second quarter, reflecting the continued growth in our commercial tire dealer, RoadSquad OnSite(R) mobile maintenance, and RoadSquad(R) roadside assistance and call center programs. On a same site basis, our consolidated site level gross margin in excess of site level operating expenses improved over the prior year quarter by 6.8%, reflecting our success in our truck service growth initiatives, the changes we are making in our restaurants and other initiatives to increase revenues and control costs. In addition, we are pleased to announce that we have commenced plans to more aggressively grow our travel center network, including by acquisition, development and franchising and also through the introduction of our newly developed smaller format TA Express concept that will be rolled out in the coming months. We are also pleased to announce that in July we began implementing our convenience store loyalty program and expect to have that program, named GoGo Rewards, fully implemented during the third quarter. We also recognized a $51.5M charge during the second quarter to impair goodwill in our convenience stores segment. Despite this impairment charge, we expect that our convenience stores' operating results will improve in the second half of 2018."