Not sure what you mean Mikey. I didn't include the 7.5 million shares that they just sold. If you include those, there are now 37.5 million shares outstanding, so the number of shares outstanding have more than doubled since 2010. They've also added $125 million in long-term debt. Gallons sold (excluding the most recent acquisition) have barely budged.
We'll see how the profitable the convenience stores are (at least they can't use the excuse that those sites are still "ramping up") when the Q1 report comes out in May.
One thing I do know...RMR's management fee just saw a nice bump in its management fee once the purchase closed (assuming, of course, that the convenience stores do have revenue...)
Mikey, do you realize how ridiculous you sound? If those new sites were purchased at "deep discounts", then that means they should be worth far more than the $265 million TA has spent. If that's true, then why in the heck did TA sell shares at a price that valued the equity in the ENTIRE COMPANY at $257 million?
On the one hand, you think TA management is clever enough to buy new sites at "deep discounts". On the other hand, TA management is stupid enough to sell 20% of the company for less than the money they spent on 30 sites.
After this fiasco, I have no interest in owning TA at any price.
Here's something fun to consider:
In 2010, TA sold 1,958 gallons of gas. For the 12 months ended 9/30/13, TA sold 1,985 gallons.
At the end of 2010, there were about 18 million shares o/s. Prior to the latest share offering, there were nearly 30 million shares o/s.
So, in 2010 TA sold 108 gallons per share of stock outstanding.
For the last 12 months, TA sold 66 gallons per share of stock outstanding.
With a track record like that, I'm surprised Mr. O'Brien isn't on the cover of Fortune as CEO of the Year.
Tried posting this earlier with links, but I guess it didn't post.
Tell me which numbers are made up....
Shares o/s before the latest offering: 29,569,781 (source - cover page of latest 10-Q)
Price TA received from latest equity offering: $8.695/share (source - page 1 of prospectus filed on 12/11/13)
Value of TA based on offering price: $8.695/share X 29,569,781 shares = $257,109,245.80 (source - Art's calculator)
Cost of 30 sites TA has purchased since 2011: $265,000,000 (source - Tommy O'Brien on the Q3 2013 conference call transcript)
"since January 2011, we have spent or committed to spend $265 million to purchase and refurbish a total of 30 sites."
So, if those 30 sites are worth what they paid (of course, all the TA bulls think those sites are worth FAR more than what they paid), then that means that TA's management thinks its equity in the rest of the company (i.e. sites leased from HPT, vacant land parcels, etc) is worthless. Or to put it another way, the value of those sites and related assets (cash, A/R, etc) are worth less than TA's liabilities.
I guess TA's management doesn't understand the concept of buy low / sell HIGH.