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TravelCenters of America LLC Message Board

  • sirius_yomama_2 sirius_yomama_2 May 19, 2011 2:36 PM Flag

    From Prospectus.....interesting.

    If they really stick to this mission than I dont mind the dilution....note the bankruptcy issues of the Midwest facilities. There is apparently lots of hurt that TA is looking to take advantage of and the capital needed is now.

    "We believe that the U.S. economy is currently in the early stages of a prolonged period of economic recovery and expansion. Our historical fuel sales were as follows (in millions of gallons):

    The nonfuel revenues generated at our sites for the years ended December 31, 2007, 2008 and 2009 and the twelve months ended March 31, 2011, were $1.227 billion, $1.190 billion, $1.097 billion and $1.158 billion, respectively. The amount for 2007 includes the nonfuel sales of our predecessor and an acquired company prior to January and May 2007, respectively.

    We believe that, historically, improvements in the U.S. economy have led to increased truck freight and motorist travel. We believe we have designed a business plan that may allow us to take advantage of what may be a prolonged period of economic recovery and expansion. As part of these plans, we have identified a number of improvements to our existing travel centers that we designed with a goal to make our travel centers attract additional customers and thereby increase our share of the Interstate Highway market for fuel and non-fuel products and services.

    Also, we believe that the recent recession has caused many of our competitors to suffer irreversible financial difficulties. For example, in 2008, a large competitor of ours, Flying J Inc., filed for bankruptcy protection and was subsequently acquired by Pilot Travel Centers LLC, another large competitor in 2010. In addition in 2011, a regional gasoline station and travel center company based in the Midwest filed for bankruptcy protection and was subsequently liquidated to multiple purchasers, including us. We believe that numerous other travel center operators have encountered difficulty in refinancing their specialized real estate in current market conditions and that stress has led to, or may lead to further, opportunities for acquisition at attractive prices. We have recently purchased or agreed to purchase eight travel centers at what we believe are attractive prices, as described below. We believe that acquiring these travel centers will enhance our ability to take advantage of the economic expansion that we anticipate."

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    • They are truely ramping up for big expansion here....even there credit facility is being increased.....I am starting to like this.

      "Financing activities.

      On May 12, 2011, we sold to Hospitality Trust improvements we previously made to travel centers we lease from Hospitality Trust for proceeds of approximately $36 million, resulting in an increase in our annual rent of approximately $3 million. In the future, we may request that Hospitality Trust fund additional amounts for renovation and improvements at the leased travel centers in return for rent increases; however, Hospitality Trust is not obligated to fund such amounts. Our existing $100 million credit facility, expiring in 2012, has historically been used to issue letters of credit and for short term borrowings. We have begun discussions with lenders participating in our existing credit line to expand that line to as much as $200 million and extend its maturity date to 2016."

    • this is true, but the big "IF" is what is the plan if the U.S. does NOT have a prolonged economic recovery? What is the back-up plan then?

    • going forward at current price is put stupid and careless....they either have to announce the deal to get support or just pull back on the offering and go with financing the additional sites.....

    • If they pulled it back, I bet we'd see the stock price shoot to $10. I think it woke the market and Its investors.

    • ive done a complete 180 myself...I hope they can figure out a way to continue purchasing bargain properties at 50/cents on the dollar.
      Also, due to some past issues with HPT's involvement with TA, I have been negative here too. Now, the reality is that HPT own lots of shares too and furthermore who better to advise on any real estate deals but experts like HPT, who would be readily available if asked.

      Let the stock market over-react as usual. Q2 earnings will be strong I believe and if so will bring the share price North very quickly.
      I'm in this for the long haul..Ray Charles could see the potential...and I still cant believe TA is this cheap.

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