Rocky Mountain Trucking LLC

TravelCenters of America on Tuesday reported its third-quarter net income increased 66% as revenue climbed to $2.8 billion from $1.9 billion a year earlier, despite a decline in gasoline sales.

The company also reported nonfuel revenue for the quarter was $564 million, a gain of 10.5% compared with the 2021 period. Revenue from truck service increased 13.6% to $227 million compared with a year earlier.

TravelCenters of America LLC (NASDAQ: TA) reported Q3 earnings per share of $2.54, 3 cents lower than several Wall Street analysts’ estimate. The company’s revenue for the quarter also came in lower than the consensus estimate of $2.72 billion.

“TA delivered another strong quarter, demonstrating continued resilience and strength in our business, resulting in a 67% increase in net income and a 36% improvement in adjusted EBITDA [earnings before interest and taxes],” TA CEO Jonathan Pertchik said in a news release

Westlake, Ohio-based TA is the country’s largest publicly traded, full-service travel center network. It boasts more than 276 locations in 44 states and employs about 18,000 people.

Revenue from fuel increased 57% year over year (y/y) to $2.2 billion compared the same year-ago quarter due to much higher pricing.

TA sold 582,639 gallons of fuel in the quarter, a 0.5% decline compared to the same period a year ago. Diesel sales of 518,778 gallons increased 1%, while gasoline was down 11.3%.

TA’s fuel gross margin per gallon increased 24.5% y/y in Q3 to $0.227 compared to a year ago.

“Our fuel team continued to navigate ongoing uncertain macroeconomic conditions,” Pertchik said. “While we were able to increase pricing to help offset inflationary pressures felt across our industry as well as the broader economy, we are continuing to see the impact of cost growth and a relative softening in hospitality as inflation impacts consumer behavior.”

TravelCenters of AmericaQ3/22Q3/21Y/Y % Change
Total revenue$2.8B$1.9B47%
Fuel revenue$2.2B$1.4B57%
Diesel sales volume (gallons)518,778513,8271%
Fuel gross margin per gallon0.2270.18125.4%
Earnings per share$2.49$1.5263%
Information provided by TravelCenters of America

Click for more FreightWaves articles by Noi Mahoney.

More articles by Noi Mahoney

Embark Trucking expands operations into 4 new markets

Ex-football star Manti Te’o offers insight on success and redemption

Mexico approves ending daylight savings time, potentially affecting cross-border freight

The post TravelCenters of America posts $2.8B in revenue Q3 appeared first on FreightWaves.