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TravelCenters of America LLC$3.67($.01)(.27%)

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 TravelCenters of America LLC Announces Fourth Quarter and Full Year 2015 Results
   Monday, March 14, 2016 7:00:02 AM ET

TravelCenters of America LLC (TA ) today announced financial results for the three months and the year ended December 31, 2015:

                                                                                                                                                                                                     
(in thousands, except per share unless indicated otherwise)                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Three Months Ended                                                                                                                           Year Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         December 31,                                                                                                                             December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                --------------------------------------------------------------------------------------                                                  -----------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          2015                          2014                                                                 2015                           2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                           -----------------------------------                                          -----------------                                          ------------------------------------                                          -------------------
Total revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    $ 1,351,056                                                $ 1,725,998                                                                   $ 5,850,633                                                  $ 7,778,633
(Loss) income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (4,227 )                                                   52,974                                                                        44,258                                                       98,992
Net (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      (1,608 )                                                   34,342                                                                        27,719                                                       60,969
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Net (loss) income per common share:
  Basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                               $     (0.04 )                                              $      0.91                                                                   $      0.72                                                  $      1.62
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Supplemental Data:
  Fuel sales volume (gallons):
    Diesel fuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       420,606                                                    414,640                                                                     1,722,209                                                    1,696,662
    Gasoline                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          123,786                                  84,487                                                    407,894                                   328,128  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
  Total fuel sales volume (gallons)                                                                                                                                                                                                                                                                                                                                                                                                                                                                   544,392                                 499,127                                                  2,130,103                                 2,024,790  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
  Fuel gross margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                               $   103,270                                                $   138,708                                                                   $   414,494                                                  $   428,500
  Fuel gross margin per gallon (in cents)                                                                                                                                                                                                                                                                                                                                                                                                                                                               18.97                                                      27.79                                                                         19.46                                                        21.16
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
  Total nonfuel revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                          $   451,975                                                $   397,010                                                                   $ 1,782,761                                                  $ 1,616,802
  Nonfuel gross margin                                                                                                                                                                                                                                                                                                                                                                                                                                                                                240,609                                                    218,192                                                                       962,766                                                      877,931
  Nonfuel gross margin percentage                                                                                                                                                                                                                                                                                                                                                                                                                                                                        53.2                    %                                  55.0 %                                                                        54.0                    %                                    54.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
  Adjusted EBITDA(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                              $    21,154                                                $    74,542                                                                   $   149,688                                                  $   181,288
  Adjusted EBITDAR(1)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  83,217                                                    129,402                                                                       381,279                                                      398,443


(1) A reconciliation of earnings before interest, taxes, depreciation and amortization, and loss on extinguishment of debt, or Adjusted EBITDA, and Adjusted EBITDA before rent expense, or Adjusted EBITDAR, from net income, the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP, and the reasons why management believes the presentation of these measures provides useful information to investors, appear in the supplemental data below.

Fourth Quarter 2015 Business Commentary

Fuel sales volume increased 45.3 million gallons, or 9.1%, compared to the 2014 fourth quarter: a 50.5 million gallon increase from sites acquired since the beginning of the 2014 fourth quarter, offset by a 5.2 million gallon decrease in same site volume. Fuel revenue declined by $429.8 million, or 32.4%, due to significantly lower market prices for fuel compared to the 2014 fourth quarter.

Fuel gross margin declined $35.4 million, or $0.088 per gallon, to $103.3 million, or $0.190 per gallon, primarily due to a favorable purchasing environment in the 2014 fourth quarter that did not recur in 2015.

During both 2015 and 2014, TA purchased fuel under certain agreements which provided that TA would share in the economic benefit of a federal program that provides fuel tax credits to blenders of certain renewable fuels, only if such program were to be approved by the United States federal government. This program was approved, and retroactively applied, in December of each 2015 and 2014. As a result, TA recognized benefits in fuel gross margin of $8.0 million, or $0.015 per gallon, in the 2015 fourth quarter and $6.9 million, or $0.014 per gallon, in the 2014 fourth quarter. The 2015 government approval also included a prospective approval of this credit to December 31, 2016, and as such, TA currently expects to recognize similar benefits ratably during the year 2016, rather than solely in the fourth quarter as has occurred in 2014 and 2015.

Nonfuel revenue for the 2015 fourth quarter increased $55.0 million, or 13.8%, compared to the 2014 fourth quarter: approximately 25.0% of this increase, or $13.6 million, was due to an increase in same site revenue and approximately 75.0%, or $41.4 million, was due to sites acquired since the beginning of the 2014 fourth quarter.

Nonfuel gross margin for the 2015 fourth quarter increased by $22.4 million, or 10.3%, compared to the 2014 fourth quarter: approximately 50.0%, or $10.8 million, was due to an increase in same site nonfuel gross margin and approximately 50.0%, or $11.6 million, was due to sites acquired since the beginning of the 2014 fourth quarter.

Nonfuel gross margin as a percentage of nonfuel revenue for the 2015 fourth quarter was 53.2%, a 1.8 percentage point decline compared to the 2014 fourth quarter. This decline is principally attributed to the inclusion of additional standalone convenience stores in the 2015 period, because nonfuel gross margin percentage in TA’s store operations is typically lower than the nonfuel gross margin percentage for TA’s truck service and restaurant operations; store revenue in the 2015 fourth quarter represented 38.5% of total nonfuel revenue versus 33.8% in the 2014 fourth quarter.

Site level operating expenses increased $24.9 million, or 12.2%, compared to the 2014 fourth quarter: approximately 25.0% of this increase, or $6.3 million, was due to an increase in same site expenses, and approximately 75.0%, or $18.6 million, was due to sites acquired since the beginning of the 2014 fourth quarter.

Selling, general and administrative expense increased $6.3 million, or 22.6%, compared to the 2014 fourth quarter, principally as a result of expenses related to accounting, finance and operational staffing increases primarily associated with TA’s acquisition activities which included the acquisition of three travel centers and 170 convenience stores during 2015.

Real estate rent expense increased $7.2 million, or 13.1%, compared to the 2014 fourth quarter, principally as the result of a $397.4 million sale leaseback transaction announced in the 2015 second quarter, of which TA had completed $279.4 million of sales prior to December 31, 2015, as well as rent expense related to $99.9 million of purchases of improvements by Hospitality Properties Trust, or HPT, at leased properties during 2015 as part of TA’s ongoing capital improvement program.

Interest expense increased $1.6 million principally as a result of TA’s issuance in October 2015 of $100.0 million of bonds due in 2030, offset by a $0.9 million decline in interest expense associated with the sale leaseback transaction described above, which resulted in the qualification as operating leases of certain leased properties that previously were accounted for as financing leases.

Adjusted EBITDAR for the 2015 fourth quarter decreased by $46.2 million, or 35.7%, compared to the 2014 fourth quarter primarily due to the decrease in fuel gross margin, as described above.

Net loss for the 2015 fourth quarter was $1.6 million, or $0.04 per common share, compared to net income of $34.3 million, or $0.91 per common share, for the 2014 fourth quarter. The change in net income is primarily due to the decrease in fuel gross margin and increases in expenses as noted above, partially offset by an increase in nonfuel gross margin.

Travel Centers

Revenues for TA’s travel center segment for the 2015 fourth quarter decreased by $487.2 million, or 29.2%, compared to the 2014 fourth quarter, due to decreases in fuel revenues as a result of lower market prices for fuel despite an increase in fuel sales volume. These decreases were partially offset by increases in nonfuel revenues as a result of sites acquired since the beginning of the 2014 fourth quarter and a 3.3% increase in nonfuel revenues on a same site basis.

Site level gross margin in excess of site level operating expenses for TA’s travel center segment for the 2015 fourth quarter decreased by $42.2 million, or 27.3%, compared to the 2014 fourth quarter. This decrease is in part from same site results, which included a $45.4 million decline in fuel gross margin largely as a result of the favorable purchasing and retail pricing environment in 2014 that did not recur in 2015, partially offset by $10.0 million, or 4.7%, increase in nonfuel gross margin which outpaced a $7.1 million, or 3.6%, increase in site level operating expenses. The same site decrease was partially offset by increases from sites acquired since the beginning of the 2014 fourth quarter.

Convenience Stores

Revenues for TA’s convenience store segment for the 2015 fourth quarter increased by $108.3 million, or 261.3%, compared to the 2014 fourth quarter, due to increases in fuel sales volume as a result of sites acquired during 2015, partially offset by decreases in market prices for fuel. Revenues also increased as a result of increased nonfuel revenues primarily due to the sites acquired during 2015.

Site level gross margin in excess of site level operating expenses for TA’s convenience store segment for the 2015 fourth quarter increased by $3.7 million, or 352.0%, compared to the 2014 fourth quarter: of this increase, $2.0 million is from same site results, which included a $0.3 million increase in fuel gross margin, a $0.8 million, or 15.2%, increase in nonfuel gross margin and a $0.9 million, or 14.1%, decrease in site level operating expenses. The remaining $1.7 million increase is from sites acquired during 2015.

Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2015 fourth quarter results:

"The 2015 fourth quarter represented a period of significant activity for TA. Our acquisition of 20 convenience stores, as well as the high level of activity related to the ramp up of these and over 150 other recently acquired locations, are part of a longer-term goal to balance our fuel business between diesel fuel, which principally relies on business demand, and gasoline, which principally relies on consumer demand. Already, during the 2015 fourth quarter, gasoline represented 22.7% of our total fuel sales by volume, up from 16.2% during the full year 2014.

"The most important area of focus for TA during 2016, is expected to be for us to continue to ramp up the financial results of newly acquired locations. As of March 14, 2016, nearly all of the standalone convenience stores we owned as of December 31, 2015, and the travel stores at 25 of our travel centers have been updated to include all brand standard Minit Mart signage and marks and the addition of our private label coffee and other programs. We have also completed our review of gasoline branding at all of the standalone convenience stores (204 as of December 31, 2015) and, as of March 14, 2016, gasoline brand conversions at 83 of these sites and our updating of gasoline brand elements, such as new dispensers and signage designs, at 109 of these sites have been completed. We look forward to realizing the value created by these and other activities during 2016.

"At the same time, we remain committed to maintaining our position as the leader in the travel center industry from the perspective of professional drivers, fleets and consumers. In the 2015 fourth quarter, our RoadSquad Connect(TM), RoadSquad Onsite(R), Reserve-It!(TM) parking and diesel exhaust fluid programs all contributed to the increase in our travel center segment’s same site nonfuel gross margin.

"While we have taken on a lot of activity in a relatively short period of time, I remain confident that we have the personnel, financial, branding and other resources required to successfully execute all of it, to achieve a ramp up of financial results from recently acquired locations and to continue to capitalize on our marketing and branding initiatives, while we retain the capacity to take on new potential acquisitions."

Investment Activity

Acquisition and Development Activity

TA’s 2015 fourth quarter activities included the acquisition of 20 standalone convenience stores in three separate transactions for an aggregate purchase price of $52.3 million, as well as $26.9 million of investments to improve recently acquired locations.

Since its acquisition program began in 2011, and through year end 2015, TA has acquired 37 travel centers and 201 standalone convenience stores. As of December 31, 2015, TA’s investments in the 37 travel centers and 201 standalone convenience stores acquired totaled $320.9 million and $388.3 million, respectively. TA estimates that it will invest an additional $24.6 million to complete the expansion and renovation of certain of these travel centers and $19.0 million to complete the rebranding, expansion and improvements of certain of these convenience stores.

As of December 31, 2015, TA had agreed to purchase an additional 24 convenience stores for purchase prices aggregating $32.8 million, and expects to invest an additional $4.7 million to rebrand, and at some locations, expand and improve them. Since December 31, 2015, TA has completed the acquisition of seven of these locations, in Illinois and Missouri, for an aggregate of $13.9 million and has entered new agreements to acquire an additional 16 convenience stores in Wisconsin and Illinois for $23.3 million; TA expects to invest an additional $3.8 million in these 16 locations to rebrand, renovate and or expand them. TA also has an agreement to acquire certain assets of Quaker Steak & Lube(R) restaurant business, or QSL, including the brand, all of its owned and leased properties and its franchise agreements for $25.0 million. Currently, there are 53 QSL locations in 16 states. TA expects to complete these pending acquisitions during 2016; but these purchases are subject to conditions and may not occur, may be delayed or the terms may change.

Capital improvements to recently purchased travel centers are often substantial and require a long period of time to plan, design, permit and complete; and, after being completed, the improved travel centers require a period of time to become part of TA’s customers’ supply networks and produce stabilized financial results. TA estimates that the travel centers it acquires generally will reach stabilization in approximately the third year after acquisition. Capital improvements to recently acquired standalone convenience stores are typically less capital intensive than travel centers and therefore, the convenience stores TA acquires generally reach stabilization in approximately one year after acquisition. Actual results for both travel centers and convenience stores can vary widely from these estimates due to many factors, some of which are outside TA’s control.

The 37 travel centers and 201 convenience stores acquired by TA since the beginning of 2011 through December 31, 2015, have produced, from the beginning of each period or, if later, the dates TA began to operate them, the following amounts of revenues in excess of cost of goods sold and site level operating expenses:

                                                                                                                                  
Revenues in excess of cost of goods sold                                                                                                                                                                                                                                           Three Months Ended                                                                                                    Year Ended
and site                                                                                                                                                                                                                                                                              December 31,                                                                                                      December 31,
level operating expenses (in thousands)
                                                                                                                                                                                                                                                           ----------------------------------------------------------                                                  -----------------------------------------------------------------------
                                                                                                                                                                                                                                                   2015                      2014                                         2015                       2014
----------------------------------------                                                                                                                                                                                              -------------------------------                                          -------------                      --------------------------------                                          --------------
Travel Centers                                                                                                                                                                                                                                              $ 13,215                                               $ 18,974                                              $ 54,883                                                       $     52,737
Convenience Stores                                                                                                                                                                                                                                             4,450                                                    741                                                15,808                                                              7,589
                                                                                                                                                                                                                                                                                                                                                                                                                                

As of December 31, 2015, TA had begun construction of four travel centers and has plans to develop an additional travel center. These five development properties, which TA expects to sell to and lease back from HPT upon their completion, are on land parcels TA owns. Through December 31, 2015, TA has invested $55.5 million (including land costs) in these five travel center sites. TA estimates that the remaining development and equipment costs of these five travel centers as of December 31, 2015, was $57.7 million. Since December 31, 2015, TA completed the construction of one of these travel centers and expects to complete its sale to HPT during the first quarter of 2016. TA currently expects development of two of these travel centers to be completed during the first half of 2016 and development of the other two travel centers to be completed during the second half of 2016 or first half of 2017.

Conference Call:

On Monday, March 14, 2016, at 10:00 a.m. Eastern Time, TA will host a conference call to discuss its financial results and other activities for the three months ended December 31, 2015. Following management’s remarks, there will be a question and answer period.

The conference call telephone number is 877-329-4614. Participants calling from outside the United States and Canada should dial 412-317-5437. No pass code is necessary to access the call from either number. Participants should dial in about 15 minutes prior to the scheduled start of the call. A replay of the conference call will be available for about a week after the call. To hear the replay, dial 412-317-0088. The replay pass code is 10079066.

A live audio webcast of the conference call will also be available in a listen only mode on TA’s website at www.ta-petro.com. To access the webcast, participants should visit TA’s website about five minutes before the call. The archived webcast will be available for replay on TA’s website for about one week after the call. The transcription, recording and retransmission in any way of TA’s fourth quarter conference call is strictly prohibited without the prior written consent of TA. The Company’s website is not incorporated as part of this press release.

About TravelCenters of America LLC:

TA’s travel centers operate under the "TravelCenters of America", "TA", "Petro Stopping Centers" and "Petro" brand names and offer diesel and gasoline fueling, restaurants, truck repair facilities, travel/convenience stores and other services which provide an efficient and enhanced travel experience. TA’s nationwide business includes travel centers located in 43 U.S. states and in Canada. TA convenience stores operate principally under the "Minit Mart" brand name and offer gasoline fueling as well as nonfuel products and services such as coffee, groceries, fresh food offerings and other convenience items.

WARNING CONCERNING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. WHENEVER TA USES WORDS SUCH AS ’’BELIEVE’’, ’’EXPECT’’, ’’ANTICIPATE’’, ’’INTEND’’, ’’PLAN’’, ’’ESTIMATE’’ OR SIMILAR EXPRESSIONS, TA IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON TA’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY THESE FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:

-- TA EXPECTS TO ACQUIRE ADDITIONAL LOCATIONS THAT TA EXPECTS WILL PRODUCE STABILIZED FINANCIAL RESULTS AFTER THE LOCATION IS ACQUIRED AND IMPROVED. THESE STATEMENTS MAY IMPLY THAT TA’S EXPECTED STABILIZATION AT ITS ACQUIRED SITES IN FACT WILL BE REALIZED AND WILL RESULT IN INCREASES IN TA’S OPERATING INCOME AND NET INCOME IN THE FUTURE. HOWEVER, MANY OF THE LOCATIONS TA HAS ACQUIRED PRODUCED OPERATING RESULTS THAT CAUSED THE PRIOR OWNERS TO EXIT THESE BUSINESSES AND TA’S ABILITY TO OPERATE THESE LOCATIONS PROFITABLY DEPENDS UPON MANY FACTORS, SOME OF WHICH ARE BEYOND ITS CONTROL, SUCH AS THE LEVEL OF DEMAND FOR TA’S GOODS AND SERVICES. ALSO, TA’S FUTURE OPERATING INCOME AND NET INCOME WILL DEPEND UPON MANY FACTORS IN ADDITION TO THE RESULTS REALIZED FROM ITS ACQUIRED SITES; ACCORDINGLY, TA’S FUTURE OPERATING INCOME AND NET INCOME MAY NOT INCREASE BUT INSTEAD MAY DECLINE OR TA MAY EXPERIENCE LOSSES;

-- TA HAS AGREED TO ACQUIRE AND DEVELOP ADDITIONAL LOCATIONS AND BUSINESSES, AND TA’S CEO HAS COMMENTED THAT TA EXPECTS TO CONTINUE TO SEEK ACQUISITIONS. THESE STATEMENTS MAY IMPLY THAT THESE AND ADDITIONAL ACQUISITIONS AND DEVELOPMENT PROJECTS WILL BE COMPLETED AND THAT THEY WILL IMPROVE TA’S FUTURE PROFITS. HOWEVER, TA’S ACQUISITIONS ARE SUBJECT TO CLOSING CONDITIONS WHICH MAY NOT BE MET AND THE TRANSACTIONS MAY NOT BE COMPLETED OR MAY BE DELAYED OR THEIR TERMS MAY CHANGE. THERE ARE MANY FACTORS THAT MAY RESULT IN TA NOT BEING ABLE TO ACQUIRE, RENOVATE AND DEVELOP ADDITIONAL LOCATIONS AT PRICES OR COSTS THAT YIELD PROFITS, INCLUDING COMPETITION FOR SUCH ACQUISITIONS FROM OTHER BUYERS, TA’S INABILITY TO NEGOTIATE ACCEPTABLE PURCHASE TERMS AND THE POSSIBILITY THAT TA MAY NEED TO USE ITS AVAILABLE FUNDS FOR OTHER PURPOSES. TA MAY DETERMINE TO DELAY OR NOT TO PROCEED WITH PENDING ACQUISITIONS OR DEVELOPMENT PROJECTS. ALSO, TA’S DEVELOPMENT COSTS COULD EXCEED THE MAXIMUM AMOUNT HPT HAS AGREED TO FUND. MOREOVER, MANAGING AND INTEGRATING ACQUIRED AND DEVELOPED LOCATIONS CAN BE DIFFICULT, TIME CONSUMING AND/OR MORE EXPENSIVE THAN ANTICIPATED AND WILL INVOLVE RISKS OF FINANCIAL LOSSES. TA MAY NOT OPERATE ITS ACQUIRED OR DEVELOPED LOCATIONS AS PROFITABLY AS IT NOW EXPECTS;

-- TA’S CEO HAS STATED HIS BELIEF THAT TA HAS THE RESOURCES, INCLUDING BUT NOT LIMITED TO THE FINANCIAL RESOURCES, TO EXECUTE ITS ACQUISITION, DEVELOPMENT AND IMPROVEMENT PLANS; MOREOVER, OTHER STATEMENTS IN THIS PRESS RELEASE REFER TO TA’S AGREEMENT TO SELL FIVE DEVELOPMENT PROJECTS TO HPT UPON THEIR COMPLETION. ALL OF THESE STATEMENTS MAY IMPLY THAT TA’S LIQUIDITY AND CAPITAL RESOURCES WILL BE SUFFICIENT FOR TA TO EXECUTE ITS PLANS, BUT LIQUIDITY AND CAPITAL RESOURCES CAN BE AFFECTED NEGATIVELY BY EXTERNAL FACTORS, OR BY TA’S FUTURE FINANCIAL RESULTS OR PERCEIVED PROSPECTS. MOREOVER, CLOSING SALE TRANSACTIONS WITH HPT ARE SUBJECT TO CERTAIN CONDITIONS WHICH MAY NOT BE SATISFIED, INCLUDING THAT HPT’S ACQUISITION PRICE FOR THE FIVE TRAVEL CENTERS TA IS DEVELOPING IS CAPPED AT $118.0 MILLION. THESE CURRENTLY UNANTICIPATED RESULTS MAY OCCUR BECAUSE OF FACTORS THAT MAY BE BEYOND TA’S CONTROL AND TA MAY BE UNABLE TO COMPLETE ITS PLANS;

-- TA’S CEO HAS STATED, IN EFFECT, THAT TA HAS A LONG TERM GOAL OF BALANCING TA’S FUEL BUSINESS BETWEEN DIESEL AND GASOLINE AND THEREBY MANAGING THE SOURCES OF DEMAND FOR ITS PRODUCTS AND SERVICES BETWEEN BUSINESS DRIVEN DEMAND AND CONSUMER DRIVEN DEMAND. HOWEVER, ACHIEVEMENT OF THAT GOAL IS NOT ASSURED BECAUSE, AMONG OTHER REASONS, NEITHER SOURCE OF DEMAND IS SUBJECT TO TA’S CONTROL AND MEETING SUCH A GOAL IS LIKELY DEPENDENT UPON TA’S ABILITY TO IDENTIFY, PURCHASE AND EFFECTIVELY OPERATE ADDITIONAL LOCATIONS, WHICH MAY NOT OCCUR DUE TO COMPETITIVE OR OTHER FACTORS; AND

-- TA’S CEO HAS STATED HIS EXPECTATIONS THAT TA WILL REALIZE THE VALUE WITH RESPECT TO CERTAIN TA LOCATIONS ON WHICH TA HAS EXPENDED SIGNIFICANT AMOUNTS TO ACQUIRE, REBRAND AND IMPROVE. THE PERFORMANCE OF THESE LOCATIONS WILL BE SUBJECT TO VARIOUS RISKS AND FACTORS, SOME OF WHICH ARE OUTSIDE TA’S CONTROL. THE PERFORMANCE OF THESE LOCATIONS MAY NOT IMPROVE AND COULD DECLINE AND TA MAY NOT REALIZE CURRENTLY EXPECTED PROFITS ON ITS INVESTMENT IN THESE LOCATIONS.

THE INFORMATION CONTAINED IN TA’S PERIODIC REPORTS (INCLUDING TA’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2015, WHICH HAS BEEN OR WILL BE FILED WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC) UNDER THE CAPTION "RISK FACTORS", OR ELSEWHERE IN THOSE REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE DIFFERENCES FROM TA’S FORWARD LOOKING STATEMENTS. TA’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, TA DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

 
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF
                                                                                                                                                                                                                                     INCOME (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                      
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Three Months Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ----------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     2015                                    2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ----------------------------------                                          --------------------------------------
Revenues:
  Fuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   $ 896,049                                                                     $ 1,325,868
  Nonfuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  451,975                                                                         397,010
  Rent and royalties from franchisees                                                                                                                                                                                                                                                                                                                                                                                                                                                                        3,032                                                        3,120  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
Total revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           1,351,056                                                    1,725,998  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     792,779                                                                       1,187,160
  Nonfuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  211,366                                                      178,818  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
Total cost of goods sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 1,004,145                                                    1,365,978  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Operating expenses:
  Site level operating                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     228,513                                                                         203,606
  Selling, general and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                       34,329                                                                          28,000
  Real estate rent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          62,063                                                                          54,860
  Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                             19,297                                                       17,042  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
Total operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   344,202                                                      303,508  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2,709                                                                          56,512
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
  Acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          1,752                                                                             225
  Interest expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      6,084                                                                           4,526
  Income from equity investees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 900                                                        1,213  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
(Loss) income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                           (4,227 )                                                                        52,974
  Benefit (provision) for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                       2,619                                                      (18,632 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ---------------------------------                                           -------------------------------------
Net (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        $  (1,608 )                                                                   $    34,342  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ==== ======= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
Net (loss) income per common share:
  Basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      $   (0.04 )                                                                   $      0.91  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      ==== ======= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the U.S. Securities and Exchange Commission.

 
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     CONSOLIDATED STATEMENTS OF
                                                                                                                                                                                                                                     INCOME (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands, except per share data)
                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Year Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               2015                                     2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ------------------------------------                                          ---------------------------------------
Revenues:
  Fuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            $ 4,055,448                                                                      $ 6,149,449
  Nonfuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           1,782,761                                                                        1,616,802
  Rent and royalties from franchisees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  12,424                                                        12,382  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
Total revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      5,850,633                                                     7,778,633  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              3,640,954                                                                        5,720,949
  Nonfuel                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             819,995                                                       738,871  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
Total cost of goods sold                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            4,460,949                                                     6,459,820  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Operating expenses:
  Site level operating                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                885,646                                                                          815,611
  Selling, general and administrative                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 121,767                                                                          106,823
  Real estate rent                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    231,591                                                                          217,155
  Depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        72,383                                                        65,584  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
Total operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            1,311,387                                                     1,205,173  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 78,297                                                                          113,640
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
  Acquisition costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     5,048                                                                            1,160
  Interest expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                22,545                                                                           16,712
  Income from equity investees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          4,056                                                                            3,224
  Loss on extinguishment of debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       10,502                                                --  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             44,258                                                                           98,992
  Provision for income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          (16,539 )                                                                        (38,023 )
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               -----------------------------------                                           --------------------------------------
Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        $    27,719                                                   $    60,969  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ==== ========= ====================                                           ======= ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Net income per common share:
  Basic and diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               $      0.72                                                   $      1.62  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               ==== ========= ====================                                           ======= ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the U.S. Securities and Exchange Commission.

 
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     CONDENSED CONSOLIDATED BALANCE
                                                                                                                                                                                                                                     SHEETS (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands)
                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    December 31,                                                                December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        2015                                                                        2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ---------------------------------                                             ------------------------------
Assets
Current assets:
  Cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                $   172,087                                                                         $              224,275
  Accounts receivable, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      91,580                                                                                         96,478
  Inventory                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    183,492                                                                                        172,750
  Other current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          48,181                                                                      46,672
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -----------------------------------                                           --------------------------------
   Total current assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        495,340                                                                                        540,175
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Property and equipment, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    989,606                                                                                        765,828
Goodwill and intangible assets, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            105,977                                                                                         54,550
Other noncurrent assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         44,171                                                                      42,264
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -----------------------------------                                           --------------------------------
Total assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               $ 1,635,094                                                      $            1,402,817
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Liabilities and Shareholders’ Equity
Current liabilities:
  Accounts payable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         $   125,079                                                                         $              123,084
  Current HPT Leases liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                37,030                                                                                         31,637
  Other current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    133,513                                                                     112,417
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -----------------------------------                                           --------------------------------
   Total current liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   295,622                                                                                        267,138
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Long term debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 330,000                                                                                        230,000
Noncurrent HPT Leases liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              385,498                                                                                        332,934
Other noncurrent liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    74,655                                                                      54,135
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -----------------------------------                                           --------------------------------
Total liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            1,085,775                                                                                        884,207
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Shareholders’ equity (38,808 and 38,336 common shares outstanding at                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                549,319                                                                     518,610
December 31, 2015, and December 31, 2014, respectively)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        -------------  --------------------                                           ------------------------------
Total liabilities and shareholders’ equity                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      $ 1,635,094                                                      $            1,402,817
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2015, to be filed with the U.S. Securities and Exchange Commission.

 
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     CONSOLIDATED SUPPLEMENTAL DATA
                                                                                                                                                                                                                                     (in
                                                                                                                                                                                                                                     thousands)
                                                                                                                                                                                                   
                                                                                                                                                                                                                                                                                                                                                                                                                                             Three Months Ended                                                                                                                                   Year Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                December 31,                                                                                                                                     December 31,
                                                                                                                                                                                                                                                                                                                                                                                            ------------------------------------------------------------------------------------------------------------                                                  ------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                            2015                                     2014                                                                         2015                         2014
                                                                                                                                                                                                                                                                                                                                                                                            -------------------------------------                                          -------------------------------------                                          ---------------------------------                                          ----------------
Calculation of Adjusted EBITDA
and Adjusted EBITDAR(1):
Net (loss) income                                                                                                                                                                                                                                                                                                                                                                                 $  (1,608 )                                                                    $  34,342                                                                  $  27,719                                                                      $  60,969
  Add: (benefit) provision for income taxes                                                                                                                                                                                                                                                                                                                                                          (2,619 )                                                                       18,632                                                                     16,539                                                                         38,023
  Add: depreciation and amortization                                                                                                                                                                                                                                                                                                                                                                 19,297                                                                         17,042                                                                     72,383                                                                         65,584
  Add: interest expense, net(2)                                                                                                                                                                                                                                                                                                                                                                       6,084                                                                          4,526                                                                     22,545                                                                         16,712
 Add: loss on extinguishment of debt                                                                                                                                                                                                                                                                                                                                                         --                                              --                                                  10,502                                              --
                                                                                                                                                                                                                                                                                                                                                                                            ------------------------------------                                           ------------------------------------                                           --------------------------------                                           ----------------
Adjusted EBITDA                                                                                                                                                                                                                                                                                                                                                                                      21,154                                                                         74,542                                                                    149,688                                                                        181,288
  Add: real estate rent expense(3)                                                                                                                                                                                                                                                                                                                                                                   62,063                                                      54,860                                                 231,591                                                     217,155
                                                                                                                                                                                                                                                                                                                                                                                            ------------------------------------                                           ------------------------------------                                           --------------------------------                                           ----------------
Adjusted EBITDAR                                                                                                                                                                                                                                                                                                                                                                                  $  83,217                                                   $ 129,402                                               $ 381,279                                                   $ 398,443
                                                                                                                                                                                                                                                                                                                                                                                            ======= ======= ====================                                           ======= ======= ====================                                           === ======= ====================                                           ======= =======

(1) TA calculates Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization, and loss on extinguishment of debt, and TA calculates Adjusted EBITDAR as Adjusted EBITDA plus real estate rent expense, as shown above. TA believes Adjusted EBITDA and Adjusted EBITDAR are useful indications of its operating performance and its ability to pay rent or service debt, make capital expenditures and expand its business. TA believes that Adjusted EBITDA and Adjusted EBITDAR are meaningful disclosures that may help investors to better understand its financial performance, including comparing its performance between periods and to the performance of other companies. This information should not be considered as an alternative to net income, income from operations, cash flow from operations or any other operating or liquidity performance measure prescribed by GAAP. Also, Adjusted EBITDA and Adjusted EBITDAR as presented may not be comparable to similarly titled amounts calculated by other companies.

(2) Interest expense, net, included the following:

                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Three Months Ended                                                                                                                                    Year Ended
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      December 31,                                                                                                                                      December 31,
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -----------------------------------------------------------------------------------------------                                                  -------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      2015                               2014                                                                     2015                               2014
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         -------------------------------                                          ------------------------------                                          --------------------------------                                          -------------------------------
Interest related to TA’s Senior Notes and                                                                                                                                                                                                                                                                                                                                                                                                                                       $ 6,828                                                                 $ 3,047                                                                  $ 21,574                                                                 $ 11,089
Credit Facility
Rent classified as interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    579                                                                   1,475                                                                     3,445                                                                    5,887
Amortization of deferred financing costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                       307                                                                     289                                                                       995                                                                      799
Capitalized interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        (1,076 )                                                                  (156 )                                                                  (1,796 )                                                                   (755 )
Interest income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               (588 )                                                                  (218 )                                                                  (1,880 )                                                                   (529 )
Other                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           34                                                   89                                                    207                                                   221  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         ------------------------------                                           -----------------------------                                           -------------------------------                                           ------------------------------
   Interest expense, net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   $ 6,084                                              $ 4,526                                               $ 22,545                                              $ 16,712  
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         === ===== ====================                                           == ===== ====================                                           === ====== ====================                                           == ====== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

TRAVELCENTERS OF AMERICA LLC CONSOLIDATED SUPPLEMENTAL DATA (in thousands)

(3) Real estate rent expense recognized under GAAP differs from TA’s obligation to pay cash for rent under its leases. Cash paid under real property lease agreements was $65,869 and $58,901 during the three months ended December 31, 2015 and 2014, respectively, while the total rent amounts expensed during the three months ended December 31, 2015 and 2014, were $62,063 and $54,860, respectively. Cash paid under real property lease agreements was $252,545 and $233,508 for the year ended December 31, 2015 and 2014, respectively, while the total rent amounts expensed during the year ended December 31, 2015 and 2014, were $231,591 and $217,155, respectively. GAAP requires recognition of minimum lease payments payable during the lease term in equal amounts on a straight line basis over the lease term. In addition, under GAAP, a portion of the rent TA paid to HPT is classified as interest expense and a portion of the rent payments to HPT is applied to amortize a sale leaseback financing obligation liability. Also, under GAAP, TA amortizes on a straight line basis as a reduction of rent expense the deferred tenant improvement allowance liability and deferred gains from sales of assets to HPT that TA leased back. A reconciliation of these amounts is as follows.

                                                                                                                                                                                    
                                                                                                                                                                                                                                  Three Months Ended                                                                                                                                          Year Ended
                                                                                                                                                                                                                                     December 31,                                                                                                                                            December 31,
                                                                                                                                                                                    -------------------------------------------------------------------------------------------------------                                                  ----------------------------------------------------------------------------------------------------
                                                                                                                                                                                                    2015                                   2014                                                                      2015                                 2014
                                                                                                                                                                                    -------------------------------------                                          --------------------------------                                          ---------------------------------                                          ---------------------------------
Cash payments to HPT for rent                                                                                                                                                             $  63,144                                                                  $ 56,202                                                                  $ 241,962                                                                  $ 222,722
Rent paid to others(A)                                                                                                                                                                        2,725                                                  2,699                                                  10,583                                                  10,786  
                                                                                                                                                                                    ------------------------------------                                           -------------------------------                                           --------------------------------                                           --------------------------------
  Total cash payments under real property leases                                                                                                                                             65,869                                                                    58,901                                                                    252,545                                                                    233,508
Change in accrued estimated percentage rent                                                                                                                                          --                                                                       289                                                                     (1,275 )                                                                      959
Adjustments to recognize rent expense on a                                                                                                                                                     (271 )                                                                    (389 )                                                                   (4,910 )                                                                   (1,621 )
straight line basis - HPT
Adjustments to recognize expense on a straight                                                                                                                                                  137                                                                       (76 )                                                                     (151 )                                                                     (270 )
line basis for other leases
Less sale leaseback financing obligation amortization                                                                                                                                           158                                                                      (601 )                                                                     (974 )                                                                   (2,380 )
Less portion of rent payments recognized as                                                                                                                                                    (579 )                                                                  (1,475 )                                                                   (3,445 )                                                                   (5,887 )
interest expense
Less deferred tenant improvements allowance                                                                                                                                                    (942 )                                                                  (1,692 )                                                                   (5,019 )                                                                   (6,769 )
amortization
Amortization of deferred gain on sale leaseback                                                                                                                                              (2,309 )                                                                     (97 )                                                                   (5,180 )                                                                     (385 )
transactions
                                                                                                                                                                                    --------------  --------------------                                           ---------  --------------------                                           ----------  --------------------                                           ----------  --------------------
  Total amount expensed as rent                                                                                                                                                           $  62,063                                               $ 54,860                                               $ 231,591                                               $ 217,155  
                                                                                                                                                                                    ======= ======= ====================                                           === ====== ====================                                           === ======= ====================                                           === ======= ====================

(A) Includes rent paid directly to HPT’s landlords under leases for properties TA subleases from HPT as well as rent related to properties TA leases from landlords other than HPT.

TRAVELCENTERS OF AMERICA LLC SUPPLEMENTAL SAME SITE OPERATING DATA (in thousands, except for number of locations and percentage amounts)

CONSOLIDATED SAME SITE OPERATING DATA

The following table presents consolidated operating data for the periods noted for all of the locations in operation on December 31, 2015, that were operated by TA continuously since the beginning of the earliest applicable period presented, with the exception of four locations TA operates that are owned by a joint venture. This data excludes revenues and expenses that were not generated at locations TA operates, such as rents and royalties from franchisees, and corporate level selling, general and administrative expenses.

                                                                                                                                                                                                                               
                                                                                                                                                                                                                                               Three Months Ended                                                                                                                                                                                                                  Year Ended
                                                                                                                                                                                                                                                  December 31,                                                                                                                                                                                                                    December 31,
                                                                                                                                                                  ----------------------------------------------------------------------------------------------------------------------------------------------------------------                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                2015                                  2014                      Change                                                                      2015                                    2014                      Change
                                                                                                                                                                  ---------------------------------                                          -----------------------------------                                          --------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of company operated                                                                                                                                                249                                                                          249                                                                --                                                           246                                                                           246                                                                --
locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Diesel sales volume (gallons)                                                                                                                                         410,717                                                                      409,803                                                                           0.2 %                                                   1,678,804                                                                     1,664,418                                                                           0.9 %
Gasoline sales volume (gallons)                                                                                                                                        75,216                                                    81,325                                                       (7.5 )%                                                    309,447                                                    309,534                                             -- %
                                                                                                                                                                  --------------------------------                                           ----------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                                                                                                   485,933                                                   491,128                                                       (1.1 )%                                                  1,988,251                                                  1,973,952                                                        0.7 %
                                                                                                                                                                  --------------------------------                                           ----------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Fuel revenues                                                                                                                                                       $ 797,754                                                                  $ 1,307,060                                                                         (39.0 )%                                                $ 3,785,375                                                                   $ 5,999,549                                                                         (36.9 )%
Total fuel gross margin                                                                                                                                                93,463                                                                      138,631                                                                         (32.6 )%                                                    389,886                                                                       422,064                                                                          (7.6 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Nonfuel revenues                                                                                                                                                    $ 409,665                                                                  $   396,060                                                                           3.4 %                                                 $ 1,679,269                                                                   $ 1,594,748                                                                           5.3 %
Nonfuel gross margin                                                                                                                                                  228,480                                                                      217,647                                                                           5.0 %                                                     927,999                                                                       866,954                                                                           7.0 %
Nonfuel gross margin percentage                                                                                                                                          55.8 %                                                                       55.0 %                                                                            80pts                                                     55.3                    %                                                     54.4 %                                                                                            90pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Total gross margin                                                                                                                                                  $ 321,943                                                                  $   356,278                                                                          (9.6 )%                                                $ 1,317,885                                                                   $ 1,289,018                                                                           2.2 %
Site level operating expenses                                                                                                                                         209,647                                                                      203,389                                                                           3.1 %                                                     840,063                                                                       805,917                                                                           4.2 %
Site level operating expenses as                                                                                                                                         51.2 %                                                                       51.4 %                                                                          (20)pts                                                     50.0                    %                                                     50.5 %                                                                                          (50)pts
a percentage of nonfuel revenues
Site level gross margin in excess                                                                                                                                   $ 112,296                                                                  $   152,889                                                                         (26.6 )%                                                $   477,822                                                                   $   483,101                                                                          (1.1 )%
of site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    

TRAVELCENTERS OF AMERICA LLC SUPPLEMENTAL SAME SITE OPERATING DATA (in thousands, except for number of locations and percentage amounts)

TRAVEL CENTERS SEGMENT SAME SITE OPERATING DATA

The following table presents operating data for the periods noted for all of the travel centers in operation on December 31, 2015, that were operated by TA continuously since the beginning of the earliest applicable period presented, with the exception of two travel centers TA operates that are owned by a joint venture. This data excludes revenues and expenses that were not generated at travel centers TA operates, such as rents and royalties from franchisees, and corporate level selling, general and administrative expenses.

                                                                                                                                                                                                                              
                                                                                                                                                                                                                                              Three Months Ended                                                                                                                                                                                                                  Year Ended
                                                                                                                                                                                                                                                 December 31,                                                                                                                                                                                                                    December 31,
                                                                                                                                                                  ---------------------------------------------------------------------------------------------------------------------------------------------------------------                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Travel Centers                                                                                                                                                                  2015                                  2014                          Change                                                                 2015                                    2014                                   Change
-----------------------------------                                                                                                                               ---------------------------------                                          -----------------------------------                                          -------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of company operated                                                                                                                                                217                                                                          217                                                                --                                                          214                                                                           214                                                                --
travel center locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Diesel sales volume (gallons)                                                                                                                                         409,987                                                                      409,107                                                                           0.2 %                                                  1,675,744                                                                     1,661,358                                                                           0.9 %
Gasoline sales volume (gallons)                                                                                                                                        66,159                                                    72,196                                                       (8.4 )%                                                   270,817                                                    272,546                                                       (0.6 )%
                                                                                                                                                                  --------------------------------                                           ----------------------------------                                                                                                        -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                                                                                                   476,146                                                   481,303                                                       (1.1 )%                                                 1,946,561                                                  1,933,904                                                        0.7 %
                                                                                                                                                                  --------------------------------                                           ----------------------------------                                                                                                        -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Fuel revenues                                                                                                                                                       $ 781,921                                                                  $ 1,284,440                                                                         (39.1 )%                                               $ 3,707,703                                                                   $ 5,886,328                                                                         (37.0 )%
Total fuel gross margin                                                                                                                                                91,246                                                                      136,692                                                                         (33.2 )%                                                   380,969                                                                       414,792                                                                          (8.2 )%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Nonfuel revenues                                                                                                                                                    $ 389,790                                                                  $   377,213                                                                           3.3 %                                                $ 1,599,612                                                                   $ 1,518,114                                                                           5.4 %
Nonfuel gross margin                                                                                                                                                  222,182                                                                      212,182                                                                           4.7 %                                                    902,034                                                                       843,008                                                                           7.0 %
Nonfuel gross margin percentage                                                                                                                                          57.0 %                                                                       56.2 %                                                                           80pts                                                     56.4 %                                                                        55.5 %                                                                                            90pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
Total gross margin                                                                                                                                                  $ 313,428                                                                  $   348,874                                                                         (10.2  )%                                              $ 1,283,003                                                                   $ 1,257,800                                                                           2.0 %
Site level operating expenses                                                                                                                                         204,198                                                                      197,049                                                                           3.6   %                                                  817,565                                                                       783,533                                                                           4.3 %
Site level operating expenses as                                                                                                                                         52.4 %                                                                       52.2                    %                                                        20pts                                                     51.1 %                                                                        51.6 %                                                                                          (50)pts
a percentage of nonfuel revenues
Site level gross margin in excess                                                                                                                                   $ 109,230                                                                  $   151,825                                                                         (28.1 )%                                               $   465,438                                                                   $   474,267                                                                          (1.9 )%
of site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   

TRAVELCENTERS OF AMERICA LLC SUPPLEMENTAL SAME SITE OPERATING DATA (in thousands, except for number of locations and percentage amounts)

CONVENIENCE STORES SEGMENT SAME SITE OPERATING DATA

The following table presents operating data for the periods noted for all of the convenience stores in operation on December 31, 2015, that were operated by TA continuously since the beginning of the earliest applicable period presented, with the exception of two convenience stores TA operates that are owned by a joint venture. This data excludes revenues and expenses that were not generated at convenience stores TA operates, such as corporate level selling, general and administrative expenses.

                                                                                                                                                                                    
                                                                                                                                                                                                                          Three Months Ended                                                                                                                                                                     Year Ended
                                                                                                                                                                                                                             December 31,                                                                                                                                                                       December 31,
                                                                                                                                                                   --------------------------------------------------------------------------------------------------------------------                                                      ---------------------------------------------------------------------------------------------------------------------------------------
Convenience Stores                                                                                                                                                     2015            2014               Change                                                     2015              2014                        Change
------------------------------------                                                                                                                               ------------                                          ------------                                          --------------------                                          -------------                                          --------------                                          ------------------------------------
Number of company operated                                                                                                                                                32                                                    32                                             --                                                        32                                                      32                                             --
convenience store locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Fuel sales volume (gallons)                                                                                                                                            9,787                                                 9,825                                                       (0.4 )%                                                 41,690                                                  40,048                                                        4.1 %
Fuel revenues                                                                                                                                                       $ 15,833                                              $ 22,620                                                      (30.0 )%                                               $ 77,672                                               $ 113,221                                                      (31.4 )%
Fuel gross margin                                                                                                                                                      2,217                                                 1,939                                                       14.3 %                                                   8,917                                                   7,272                                                       22.6 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Nonfuel revenues                                                                                                                                                    $ 19,875                                              $ 18,847                                                        5.5 %                                                $ 79,657                                               $  76,634                                                        3.9 %
Nonfuel gross margin                                                                                                                                                   6,298                                                 5,465                                                       15.2 %                                                  25,965                                                  23,946                                                        8.4 %
Nonfuel gross margin percentage                                                                                                                                         31.7 %                                                29.0 %                                                        270pts                                                 32.6 %                                                  31.2 %                                                                        140pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                             
Total gross margin                                                                                                                                                  $  8,515                                              $  7,404                                                       15.0 %                                                $ 34,882                                               $  31,218                                                       11.7 %
Site level operating expenses                                                                                                                                          5,449                                                 6,340                                                      (14.1 )%                                                 22,498                                                  22,384                                                        0.5 %
Site level operating expenses as a                                                                                                                                      27.4 %                                                33.6 %                                                      (620)pts                                                 28.2 %                                                  29.2 %                                                                      (100)pts
percentage of nonfuel revenues
Site level gross margin in excess of                                                                                                                                $  3,066                                              $  1,064                                                      188.2 %                                                $ 12,384                                               $   8,834                                                       40.2 %
site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
 
                                                                                                                                                                                                                       TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                       BUSINESS SEGMENT INFORMATION
                                                                                                                                                                                                                                (UNAUDITED)
                                                                                                                                                                                                                              (in thousands)
                                                 
                                                                                                                                                                                                                                                                                                     Three Months Ended December 31, 2015
                                                                                                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                       Travel                                        Convenience                                      Corporate                                 Consolidated
                                                                                                                                                                                       Centers                                                                               Stores                                                                               and Other
                                                                                                                                                                    -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             ---------------------------------
Revenues
  Fuel                                                                                                                                                                    $        786,963                                                                      $         90,293                                                                      $         18,793                                                                     $ 896,049
  Nonfuel                                                                                                                                                                          392,179                                                                                59,519                                                                                   277                                                                       451,975
  Rent and royalties from franchisees                                                                                                                                                3,032                                                     --                                                     --                                                      3,032  
                                                                                                                                                                    -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------------
Total revenues                                                                                                                                                                   1,182,174                                                            149,812                                                             19,070                                                  1,351,056  
                                                                                                                                                                    -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Site level gross margin in excess of                                                                                                                                      $        112,508                                                   $          4,809                                                   $          1,081                                                  $ 118,398  
site level operating expenses
                                                                                                                                                                    ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                       
Corporate operating expenses
  Selling, general and administrative                                                                                                                                     $ --                                                                      $ --                                                                      $         34,329                                                                     $  34,329
  Real estate rent                                                                                                                                                          --                                                                        --                                                                                62,063                                                                        62,063
  Depreciation and amortization                                                                                                                                             --                                                     --                                                             19,297                                                     19,297  
                                                                                                                                                                    -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------------
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                         2,709
                                                                                                                                                                                                                                                                                                                                                                                                                                       
  Acquisition costs                                                                                                                                                         --                                                                        --                                                                                 1,752                                                                         1,752
  Interest expense, net                                                                                                                                                     --                                                                        --                                                                                 6,084                                                                         6,084
  Income from equity investees                                                                                                                                              --                                                     --                                                                900                                                        900  
                                                                                                                                                                    -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------------
Loss before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                      (4,227 )
  Benefit for income taxes                                                                                                                                                  --                                                     --                                                              2,619                                                      2,619  
                                                                                                                                                                    -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -----------------------------------
Net loss                                                                                                                                                                  $ --                                                   $ --                                                   $ --                                                  $  (1,608 )
                                                                                                                                                                    ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
 
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     BUSINESS SEGMENT INFORMATION
                                                                                                                                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands)
                                                         
                                                                                                                                                                                                                                                                                                                                                                                          Three Months Ended December 31, 2014
                                                                                                                                                                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                           Travel                                        Convenience                                      Corporate                                  Consolidated
                                                                                                                                                                                                                                                                           Centers                                                                               Stores                                                                               and Other
                                                                                                                                                                                                                                                        -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------
Revenues
  Fuel                                                                                                                                                                                                                                                        $      1,288,212                                                                      $         22,620                                                                      $         15,036                                                                     $ 1,325,868
  Nonfuel                                                                                                                                                                                                                                                              378,009                                                                                18,847                                                                                   154                                                                         397,010
  Rent and royalties from franchisees                                                                                                                                                                                                                                    3,120                                                     --                                                     --                                                        3,120  
                                                                                                                                                                                                                                                        -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Total revenues                                                                                                                                                                                                                                                       1,669,341                                                             41,467                                                             15,190                                                    1,725,998  
                                                                                                                                                                                                                                                        -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Site level gross margin in excess of                                                                                                                                                                                                                          $        154,668                                                   $          1,064                                                   $            682                                                  $   156,414  
site level operating expenses
                                                                                                                                                                                                                                                        ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
Corporate operating expenses
  Selling, general and administrative                                                                                                                                                                                                                         $ --                                                                      $ --                                                                      $         28,000                                                                     $    28,000
  Real estate rent                                                                                                                                                                                                                                              --                                                                        --                                                                                54,860                                                                          54,860
  Depreciation and amortization                                                                                                                                                                                                                                 --                                                     --                                                             17,042                                                       17,042  
                                                                                                                                                                                                                                                        -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              56,512
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
  Acquisition costs                                                                                                                                                                                                                                             --                                                                        --                                                                                   225                                                                             225
  Interest expense, net                                                                                                                                                                                                                                         --                                                                        --                                                                                 4,526                                                                           4,526
  Income from equity investees                                                                                                                                                                                                                                  --                                                     --                                                              1,213                                                        1,213  
                                                                                                                                                                                                                                                        -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          52,974
  Provision for income taxes                                                                                                                                                                                                                                    --                                                     --                                                            (18,632 )                                                                       (18,632 )
                                                                                                                                                                                                                                                        -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Net income                                                                                                                                                                                                                                                    $ --                                                   $ --                                                   $ --                                                  $    34,342  
                                                                                                                                                                                                                                                        ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     BUSINESS SEGMENT INFORMATION
                                                                                                                                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands)
                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                        Year Ended December 31, 2015
                                                                                                                                                                                                                                                                                                  ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                     Travel                                        Convenience                                      Corporate                                  Consolidated
                                                                                                                                                                                                                                                                                                                     Centers                                                                               Stores                                                                               and Other
                                                                                                                                                                                                                                                                                                  -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------
Revenues
  Fuel                                                                                                                                                                                                                                                                                                  $      3,763,415                                                                      $        224,894                                                                      $         67,139                                                                     $ 4,055,448
  Nonfuel                                                                                                                                                                                                                                                                                                      1,626,646                                                                               155,197                                                                                   918                                                                       1,782,761
  Rent and royalties from franchisees                                                                                                                                                                                                                                                                             12,424                                                     --                                                     --                                                       12,424  
                                                                                                                                                                                                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Total revenues                                                                                                                                                                                                                                                                                                 5,402,485                                                            380,091                                                             68,057                                                    5,850,633  
                                                                                                                                                                                                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Site level gross margin in excess of                                                                                                                                                                                                                                                                    $        483,009                                                   $         17,259                                                   $          3,770                                                  $   504,038  
site level operating expenses
                                                                                                                                                                                                                                                                                                  ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Corporate operating expenses
  Selling, general and administrative                                                                                                                                                                                                                                                                   $ --                                                                      $ --                                                                      $        121,767                                                                     $   121,767
  Real estate rent                                                                                                                                                                                                                                                                                        --                                                                        --                                                                               231,591                                                                         231,591
  Depreciation and amortization                                                                                                                                                                                                                                                                           --                                                     --                                                             72,383                                                       72,383  
                                                                                                                                                                                                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        78,297
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
  Acquisition costs                                                                                                                                                                                                                                                                                       --                                                                        --                                                                                 5,048                                                                           5,048
  Interest expense, net                                                                                                                                                                                                                                                                                   --                                                                        --                                                                                22,545                                                                          22,545
  Income from equity investees                                                                                                                                                                                                                                                                            --                                                                        --                                                                                 4,056                                                                           4,056
  Loss on extinguishment of debt                                                                                                                                                                                                                                                                          --                                                     --                                                             10,502                                                       10,502  
                                                                                                                                                                                                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    44,258
  Provision for income taxes                                                                                                                                                                                                                                                                              --                                                     --                                                            (16,539 )                                                                       (16,539 )
                                                                                                                                                                                                                                                                                                  -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Net income                                                                                                                                                                                                                                                                                              $ --                                                   $ --                                                   $ --                                                  $    27,719  
                                                                                                                                                                                                                                                                                                  ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
                                                                                                                                                                                                                                     TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                                                                                     BUSINESS SEGMENT INFORMATION
                                                                                                                                                                                                                                     (UNAUDITED)
                                                                                                                                                                                                                                     (in thousands)
                                                           
                                                                                                                                                                                                                                                                                                                                                                                                                   Year Ended December 31, 2014
                                                                                                                                                                                                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                Travel                                        Convenience                                      Corporate                                  Consolidated
                                                                                                                                                                                                                                                                                                Centers                                                                               Stores                                                                               and Other
                                                                                                                                                                                                                                                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------------                                             -----------------------------------
Revenues
  Fuel                                                                                                                                                                                                                                                                             $      5,961,764                                                                      $        113,221                                                                      $         74,464                                                                     $ 6,149,449
  Nonfuel                                                                                                                                                                                                                                                                                 1,539,996                                                                                76,634                                                                                   172                                                                       1,616,802
  Rent and royalties from franchisees                                                                                                                                                                                                                                                        12,382                                                     --                                                     --                                                       12,382  
                                                                                                                                                                                                                                                                             -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Total revenues                                                                                                                                                                                                                                                                            7,514,142                                                            189,855                                                             74,636                                                    7,778,633  
                                                                                                                                                                                                                                                                             -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Site level gross margin in excess of                                                                                                                                                                                                                                               $        492,618                                                   $          8,834                                                   $          1,750                                                  $   503,202  
site level operating expenses
                                                                                                                                                                                                                                                                             ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Corporate operating expenses
  Selling, general and administrative                                                                                                                                                                                                                                              $ --                                                                      $ --                                                                      $        106,823                                                                     $   106,823
  Real estate rent                                                                                                                                                                                                                                                                   --                                                                        --                                                                               217,155                                                                         217,155
  Depreciation and amortization                                                                                                                                                                                                                                                      --                                                     --                                                             65,584                                                       65,584  
                                                                                                                                                                                                                                                                             -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income from operations                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  113,640
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
  Acquisition costs                                                                                                                                                                                                                                                                  --                                                                        --                                                                                 1,160                                                                           1,160
  Interest expense, net                                                                                                                                                                                                                                                              --                                                                        --                                                                                16,712                                                                          16,712
  Income from equity investees                                                                                                                                                                                                                                                       --                                                     --                                                              3,224                                                        3,224  
                                                                                                                                                                                                                                                                             -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Income before income taxes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               98,992
  Provision for income taxes                                                                                                                                                                                                                                                         --                                                     --                                                            (38,023 )                                                                       (38,023 )
                                                                                                                                                                                                                                                                             -------------------------------------------                                           -------------------------------------------                                           -------------------------------------------                                           -------------------------------------
Net income                                                                                                                                                                                                                                                                         $ --                                                   $ --                                                   $ --                                                  $    60,969  
                                                                                                                                                                                                                                                                             ======= ============== ====================                                           ======= ============== ====================                                           ======= ============== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 

TRAVELCENTERS OF AMERICA LLC BUSINESS SEGMENT INFORMATION (UNAUDITED) (in thousands)

Other information by segment for the three months ended December 31, 2015 and 2014, and the year ended December 31, 2015 and 2014, follows.

                                                         
                                                                                                                                                                                                                                                                                                                                                                                                                Three Months Ended December 31, 2015
                                                                                                                                                                                                                                                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                        Travel          Convenience       Corporate           Consolidated
                                                                                                                                                                                                                                                                                                                                        Centers                                                 Stores                                                and Other
                                                                                                                                                                                                                                                                                                                                    ------------                                             ---------                                             -----------                                             --------------------
Gross margin                                                                                                                                                                                                                                                                                                                          $   318,357                                              $ 28,256                                              $   298                                                        $    346,911
Site level operating expenses                                                                                                                                                                                                                                                                                                             205,849                                                23,447                                                 (783 )                                                           228,513
Real estate rent expense                                                                                                                                                                                                                                                                                                                   61,221                                                   627                                                  215                                                              62,063
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                Three Months Ended December 31, 2014
                                                                                                                                                                                                                                                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                        Travel                                                Convenience                                             Corporate                                                 Consolidated
                                                                                                                                                                                                                                                                                                                                        Centers                                                 Stores                                                and Other
                                                                                                                                                                                                                                                                                                                                    ------------                                             ---------                                             -----------                                             --------------------
Gross margin                                                                                                                                                                                                                                                                                                                          $   352,428                                              $  7,404                                              $   188                                                        $    360,020
Site level operating expenses                                                                                                                                                                                                                                                                                                             197,760                                                 6,340                                                 (494 )                                                           203,606
Real estate rent expense                                                                                                                                                                                                                                                                                                                   54,405                                                   216                                                  239                                                              54,860
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                    Year Ended December 31, 2015
                                                                                                                                                                                                                                                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                        Travel                                                Convenience                                             Corporate                                                 Consolidated
                                                                                                                                                                                                                                                                                                                                        Centers                                                 Stores                                                and Other
                                                                                                                                                                                                                                                                                                                                    ------------                                             ---------                                             -----------                                             --------------------
Gross margin                                                                                                                                                                                                                                                                                                                          $ 1,316,165                                              $ 72,374                                              $ 1,145                                                        $  1,389,684
Site level operating expenses                                                                                                                                                                                                                                                                                                             833,156                                                55,115                                               (2,625 )                                                           885,646
Real estate rent expense                                                                                                                                                                                                                                                                                                                  229,225                                                 1,563                                                  803                                                             231,591
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
                                                                                                                                                                                                                                                                                                                                                                                                                    Year Ended December 31, 2014
                                                                                                                                                                                                                                                                                                                                    ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                                                                                                        Travel                                                Convenience                                             Corporate                                                 Consolidated
                                                                                                                                                                                                                                                                                                                                        Centers                                                 Stores                                                and Other
                                                                                                                                                                                                                                                                                                                                    ------------                                             ---------                                             -----------                                             --------------------
Gross margin                                                                                                                                                                                                                                                                                                                          $ 1,287,126                                              $ 31,218                                              $   469                                                        $  1,318,813
Site level operating expenses                                                                                                                                                                                                                                                                                                             794,508                                                22,384                                               (1,281 )                                                           815,611
Real estate rent expense                                                                                                                                                                                                                                                                                                                  215,398                                                   869                                                  888                                                             217,155

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160314005311r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160314005311/en/

SOURCE: TravelCenters - Financial

TravelCenters of America LLC 
Katie Strohacker, 617-796-8251 
Senior Director of Investor Relations 
www.ta-petro.com


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