TA Petro Overview of SVC Leases and Financial Upside
Calculation of Comparable Period Adjusted EBITDA, Comparable Period
Adjusted EBITDAR, and Comparable Period Free Cash Flow
($ in millions)
Calculation of Comparable Period Adjusted EBITDA
Adjusted EBITDA, as Reported
Add: Rent Reduction From SVC Restructuring Transaction(1)
Comparable Period Adjusted EBITDA
Calculation of Comparable Period Adjusted EBITDAR
Comparable Period Adjusted EBITDA
Add: Rent Expense, as Reported
Less: Rent Reduction From SVC Restructuring Transaction
Less: Operating Lease Impairment(2)
Comparable Period Adjusted EBITDAR
Year Ended
Last Twelve Months
Ended September 30,
Three Months
Ended June 30,
Three Months
Ended September 30,
December 31, 2018
December 31, 2019
2020
2019
2020
2019
2020
$79
$94
$108
$31
$37
$32
$41
43
$122
$94
$108
$31
$37
$32
$41
$122
$94
$108
$31
$37
$32
283
258
254
64
63
ཤྰ༄ །
$41
64
65
(43)
--
(1)
(2)
(1)
$362
$352
$361
$95
$100
$96
$105
Calculation of Comparable Period Free Cash Flow
Calculation of Pro Forma Net Cash Provided By Continuing Operating Activities
Net Cash Provided By Continuing Operating Activities, as Reported
Add: Rent Reduction From SVC Restructuring Transaction
Add: Deferred Rent Payment to SVC(2)
$73
$82
$205
$21
$134
$33
$69
43
13
18
4
4
4
4
Comparable Period Net Cash Flow Provided by Continuing Operating Activities
Less: Cash Collected From Previous Biodiesel Tax Credits(4)
$116
$96
$223
$25
$139
$37
$73
(23)
--
(70)
(68)
(1)
Pro Forma Net Cash Provided By Continuing Operating Activities
$93
$96
$153
$25
$70
$37
$72
Calculation of Capital Expenditures
Capital Expenditures From Continuing Operations, as Reported
Capital Expenditures
($145)
($84)
($58)
($21)
($11)
($26)
($9)
($145)
($84)
($58)
($21)
($11)
($26)
($9)
Calculation of Sold Improvements to SVC
Proceeds from Asset Sales to SVC, as Reported
$56
Proceeds from Sale Leaseback Transactions with SVC, as Reported
1
Sold Improvements to SVC
$56
:::
Calculation of Biodiesel Credits
Biodiesel Credits Generated for the Calendar Year(5)
Biodiesel Credits Generated
$34
$36
$28
$11
$8
$12
$10
$34
$36
$28
$11
$8
$12
$10
Calculation of Comparable Period Free Cash Flow
Pro Forma Net Cash Provided By Continuing Operating Activities
Less: Total Capital Expenditures
Add: Total Sold Improvements to SVC
Add: Total Biodiesel Credits Generated
Comparable Period Free Cash Flow
$93
(145)
56
34
$39
$96
$153
$25
$70
$37
$72
(84)
(58)
(21)
(11)
(26)
--
--
--
--
36
$48
28
11
8
12
10
$123
$16
$67
$23
$73
(9)
(1) 2018 includes add-back of $43.1 million to reflect the current annual fixed rental rate which was renegotiated by TA and SVC in 2019 allowing for side by side period comparison.
(2) During the three and nine months September 30, 2020, TA recognized $1.3 million of impairment charges to operating lease assets related to certain standalone QSL restaurants. The impairment charge was recognized in real estate rent expense in
TA's consolidated statements of operations and comprehensive income (loss).
(3) 2019, last twelve months ended September 30, 2020, three months ended June 30, 2019, three months ended June 30, 2020, three months ended September 30, 2019 and threemonths ended September 30, 2020, include add-backs of $13.2
million, $17.6 million, $4.4 million, $4.4 million, $4.4 million and $4.4 million respectively, to reflect paid deferred rental obligations to SVC which was renegotiated by TA and SVC in 2019 allowing for side by side comparison.
(4) 2018, the twelve and three months ended September 30, 2020, are adjusted downwards by $23.3 million, $69.9 million and $1.4 million, respectively, to reflect the cash collection of the federal biodiesel blenders' tax credit.
(5) Biodiesel blenders' tax credits have been applied on a pro forma basis to the year when they were generated, despite actual cash collections taking place in subsequent years due to legislation status at the time, which may not be consistent with
what was recognized and reported.
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Stopping Centers
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