TA Petro Overview of SVC Leases and Financial Upside
Truck Service - Recapturing Market Share
Framing the Opportunity
• We believe the truck repair business market share has
declined in recent years due to a weak response to
competition
• TA has identified four actionable areas of improvement:
(1)
(2)
1 Technician efficiency
2 Pricing strategy
3 Lowering RoadSquad Emergency Road Service
abandonment rate
4 Lowering technician turnover
Opportunity to roll out "Truck Services Rehab❞ plan
throughout entire network
$658mm of Truck Service Sales
(LTM Ended 9/30/2020)(1)
X
1% Truck Service Sales
Margin Improvement (2)
~$7mm of EBITDA / EBITDAR
"Truck Services Rehab" Program Overview
Led by District Manager
well versed in the
business at the site level
Changed Scheduling
•
Adjusted scheduling
to reduce wait times
and improve tech
efficiency at each of
the 5 sites
Immediate Results
• In the first 8 weeks:
- Waiting time
decreased by 33%
-Tech productivity
increased by 4%
X
Expert "SWAT" Team
• Executive team
assigned to identify
underperforming sites,
conduct bottoms up
review and develop site
level improvement plan
• 5 initial sites chosen in
April 2020
Improved Management
• Reiterated and
reinforced standard
operating procedures to
reduce wait time and
tech attrition at each
site
Outstanding Sales Growth
• Across the 5 sites:
-
―
Saw average weekly
sales increase of
+3%
Total Sales growth of
13% from week 1 to
week 8
Based on $658 million of last twelve months ended September 30, 2020 Truck Service Sales as sourced Travel Centers of Americas FY 2019 10-K and 3Q 2020 10-Q.
Represents an assumed hypothetical 1% increase in margin on truck service sales. While management believes a 1% increase in nargin on truck service sales is reasonable based on ongoing and contemplated initiatives, it is not a guarantee
of future performance, and we may fail to achieve such increase.
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TA PETRO TAEXPRESS
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