TA Petro Overview of SVC Leases and Financial Upside
22
22
(1)
(2)
(3)
Retail - Improved Procurement Drives Margins
Retail & Procurement
Hired new Head of Convenience Store, Restaurants, and Gaming in May 2020 who has extensive experience
delivering performance improvements in merchandising and operations
Hired new SVP of Procurement in June 2020 after identifying significant inefficiencies
Addressable Baseline:
LTM Ended 9/30/2020 Store and Retail Sales: $711mm (1)
Identified Inefficiencies
• Too many suppliers with limited national base
• Lack of price tiers / overstocking
• Decentralized purchasing model
·
Engagement of contracts upon expiration
• Lack of awareness around category spend
• Lack of subject matter experts
• Higher pricing vs. competitors
• Lack of product choices in key categories
• Higher than necessary # of SKUs (2)
• Lack of real-time analytics
1%
Sales Margin
Improvement (3)
~$7mm of
=
EBITDA / EBITDAR
Based on $711 million of last twelve months ended September 30, 2020 Store and Retail Sales as sourced from Travel Centers of America's FY 2019 10-K and 3Q 2020 10-Q.
SKU stands for stock keeping unit.
Represents an assumed hypothetical 1% increase in margin on store and retail sales. While management believes a 1% increase in margin on store and retail 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.
Stopping Centers
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