TravelCenters of America LLC (NYSE:TA) Q2 2020 Earnings Conference Call - Final Transcript

Aug 05, 2020 • 10:00 am ET

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TravelCenters of America LLC (NYSE:TA) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
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] Please note that all parties will be in listen only mode.

I would now like to turn the conference over to Kristin Brown, Director of Investor Relations. Please go ahead.

Executive
Kristin Brown

Thank you. Good morning, everyone. We will begin today's call with remarks from TA's Chief Executive Officer Jon Pertchik; followed by Chief Financial Officer Peter Crage; and President Barry Richards for our analyst Q&A.

Today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and federal securities laws. These forward-looking statements are based on TA's present beliefs and expectations as of today, August 5, 2020. Forward-looking statements and their implications are not guaranteed to occur and they may not occur. TA undertakes no under obligation to revise or publicly release any revision to the forward-looking statements made today other than as required by law.

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

During this call, we will be discussing non-GAAP financial measures, including EBITDA, adjusted EBITDA, adjusted net income and adjusted fuel gross margin. The reconciliation of these non-GAAP measures to the most comparable GAAP amounts are available in our press release that can be found on our website. The financial and operating measures implied and/or stated on today's call, as well as any qualitative comments regarding performance, should be assumed to be in regard to the second quarter of 2020 as compared to the second quarter of 2019, unless otherwise noted.

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

With that, Jon, I'll turn the call over to you.

Executive
Jonathan M. Pertchik

Thanks, Kristin. Good morning, everyone, and thank you for joining us and for your interest in TA. I'm pleased to report that our newly constituted senior leadership team, combined with our broader organization, generated a 78.3% increase in net income, and a 24.2% increase in EBITDA in the 2020 second quarter over the prior year second quarter despite the dramatic adverse effects of COVID-19 on our top line performance as well as on the broader economy.

I'm proud to say our transformation plan is showing the very earliest signs of company-wide improvement despite a historical pandemic. The improved year-over-year net income and EBITDA performance was driven by increased discipline in managing expenses, our prompt response to COVID-19 by implementing furloughs and executing on business management improvements throughout the organization. While these results are positive and evidence of the changes we have