TA Petro Overview of SVC Leases and Financial Upside
SG&A - Get LEAN at Corporate and Site Level
Get LEAN at Corporate
In April 2020, TA reorganized and right-sized
Corporate SG&A, which we expect to result in
~$13.1mm (1) in recurring EBITDA / EBITDAR uplift,
net of new key hires
• Elimination of approximately 130 positions.
• TA has more employees per store than its public
peers
Employees Per Company Store
(as of most recent annual filing)
94
Get LEAN at Site Level
$891mm Site Level Operating
Expenses
(LTM Ended 9/30/2020)(2)
X
1% Site Level Operating Expense
Margin Improvement (3)
~$9mm of EBITDA/EBITDAR
Full Service Restaurants
Owners and Operators
Average: 69
104
Quick Service
Restaurant
Franchisees
Convenience Store
Average: 11
Auto Part Retailers & Service
Providers Average: 15
17
11
13
15
15
34
17
29
29
TA PETRO TAEXPRESS
Stopping Centers
TA
MURPHY
USA
As sourced from TA's 1Q 2020 10-Q.
(2)
(3)
CASEY'S
Couche-Tard
GENERAL STORE
Advance
Auto Parts
O'Reilly
GPC
AUTO PARTS
Auto
Zone
DARDEN
Brinker
Canno
Based on $891 million of last twelve months ended September 30, 2020 Site Level Operating Expenses as sourced from Travel Ceners of America's FY 2019 10-K and 3Q 2020 10-Q.
Represents an assumed hypothetical 1% reduction in site level operating expenses. While management believes a 1% reduction insite level operating expenses is reasonable based on ongoing and contemplated initiatives, it is not a
guarantee of future performance, and we may fail to achieve such reduction.
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