Considering how weak the economy was in Q1, these are very good results. Stock is 9x earnings and still very cheap on EBITDA basis. This is a leveraged play on recovery in trucking freight. Cost structure has been stabilized with parent as lease costs are now fixed to revs in part. This could be a $15 stock soon.
The pantry also reported today. They own 200 stations. They said "Unfavorable weather and weak consumer confidence contributed to a decline in comparable store traffic. This impacted both our comparable store merchandise revenue and retail fuel gallons which declined 2.0% and 7.9%, respectively." TA had a relatively good quarter compared to them. The stock is 4.3x EBITDA, has modest debt and is a sitting duck for a takeover. It is worth 6.5x EBITDA which gives us 70% upside on our equity. The stock is just too cheap (and getting cheaper).
Cash flow is $2.90/shr in earnings plus depreciation. The cash flow multiple is 3.6!! They are spending most of it on upgrades and buying stations but that will wind down and free cash flow will be used for dividends. The recent debt offering was timely. Without capex, they could today pay out $2/shr easily. This is a crazy cheap stock. After the day traders exit, it will march again. 2Q could be good. It should be 6.5 x cash flow or $19/shr.