TA Petro Overview of SVC Leases and Financial Upside
Operational Leverage - 1 Base Unit (1) Yields
The combination of already enacted recurring Corporate SG&A savings and the execution of identified
margin and volume improvement opportunities allow TA to seek to drive meaningful cash flow.
A mere 1 Penny/ 1% Margin / 1 Franchise Equals Approximately $60mm of Additional EBITDA / EBITDAR.
These identifiable margin enhancement opportunities do not assume any growth in sales/volumes from
anticipated capture of market share in the respective lines of business.
Area
Key Initiative(s)
Get LEAN at Corporate
1
SG&A
•Get LEAN at Site Level
Base Unit (1)
Achieved
1% Reduction to LTM
Site Level OpEx
EBITDA EBITDAR Uplift
($ in millions)
(2)
$13.1
(3)
9.0
19
2
Fuel
3
Retail
•Drive Cents per Gallon Margin
⚫Volume Support
• Eliminate Existing In efficiencies
4
Franchise
•Expand Franchisee Base
5
Truck Service
• "Truck Services Rehab" Program Roll Out
$0.01 per Fuel Gross
Margin Improvement
(4)
20.0
1% Sales
Margin Improvement
(5)
7.0
(6)
1 TA Express Franchise
0.2
1% Truck Service Sales
7.0
Margin Improvement
(7)
(8)
6
Restaurants
•Full Service Restaurant conversions to IHOP and Black Bear Diner
Rebranding Underperforming Quick Service Restaurants
1% Margin Improvement
4.0
Total
$60.3
Source: TravelCenters of America Inc.'s FY 2019 10-K, 3Q 2020 10-Q, and Notes referenced. Please see page 30 "Notes to Page 19" for Notes referenced.
TA PETRO TAEXPRESS
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