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TravelCenters of America LLC$3.55($.15)(4.05%)

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 TravelCenters of America LLC Announces Fourth Quarter and Full Year 2016 Financial Results
   Tuesday, February 28, 2017 7:00:01 AM ET

TravelCenters of America LLC (TA ) today announced financial results for the three months and year ended December 31, 2016:

                                                                                                                                                            
(in thousands, except per share and per gallon amounts                                                                                 Three Months Ended                                                                                                                           Year Ended
unless indicated otherwise)                                                                                                               December 31,                                                                                                                             December 31,
                                                                                                 --------------------------------------------------------------------------------------                                                  -----------------------------------------------------------------------------------------
                                                                                           2016                          2015                                                                 2016                           2015
                                                                            -----------------------------------                                          -----------------                                          ------------------------------------                                          -------------------
Total revenues                                                                                     $ 1,424,287                                                $ 1,351,056                                                                   $ 5,511,405                                                  $ 5,850,633
(Loss) income before income taxes                                                                      (10,849 )                                                   (4,227 )                                                                      (3,662 )                                                     44,258
Net (loss) income attributable to common shareholders                                                   (6,493 )                                                   (1,608 )                                                                      (2,018 )                                                     27,719
                                                                                                                                                                                                                                                                                                     
Net (loss) income per common share attributable to                                                 $     (0.17 )                                              $     (0.04 )                                                                 $     (0.05 )                                                $      0.72
common shareholders (basic and diluted)
                                                                                                                                                                                                                                                                                                     
Supplemental Data:
  Fuel sales volume (gallons):
    Diesel fuel                                                                                        400,881                                                    420,606                                                                     1,660,976                                                    1,722,209
    Gasoline                                                                                           134,945                                 123,786                                                    544,448                                   407,894  
                                                                                                 ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
  Total fuel sales volume (gallons)                                                                    535,826                                 544,392                                                  2,205,424                                 2,130,103  
                                                                                                 ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
                                                                                                                                                                                                                                                                                                     
  Total fuel revenues                                                                              $   941,852                                                $   896,049                                                                   $ 3,530,149                                                  $ 4,055,448
  Fuel gross margin                                                                                    101,050                                                    103,270                                                                       404,777                                                      414,494
  Fuel gross margin per gallon                                                                     $     0.189                                                $     0.190                                                                   $     0.184                                                  $     0.195
                                                                                                                                                                                                                                                                                                     
  Total nonfuel revenues                                                                           $   478,218                                                $   451,975                                                                   $ 1,963,904                                                  $ 1,782,761
  Nonfuel gross margin                                                                                 256,353                                                    240,609                                                                     1,053,077                                                      962,766
  Nonfuel gross margin percentage                                                                         53.6                    %                                  53.2                    %                                                     53.6                    %                                    54.0                    %
                                                                                                                                                                                                                                                                                                     
  Adjusted EBITDA(1)                                                                               $    24,101                                                $    21,154                                                                   $   116,453                                                  $   149,688
                                                                                                                                                                                                                                                                                                                      


(1) A reconciliation of earnings before interest, taxes, depreciation and amortization, and loss on extinguishment of debt, or Adjusted EBITDA, from net (loss) income attributable to common shareholders, the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP, appears in the supplemental data below.

Thomas M. O’Brien, TA’s CEO, made the following statement regarding the 2016 fourth quarter results:

"During the 2016 fourth quarter, our business strategies resulted in gains in nonfuel gross margin as well as continued improvement in operating efficiencies as reflected in lower site level operating expenses on a same site basis. We grew site level gross margin in excess of site level operating expenses in total and on a same site basis. Fuel gross margin was negatively impacted by the absence in the 2016 period of an $8.0 million pretax benefit in the 2015 fourth quarter related to biodiesel fuel tax credits; our 2016 performance made up for all but $2.2 million of this amount, however net income attributable to common shareholders declined, largely as a result of increased depreciation expense associated with investments in new locations and existing site improvements that were placed in service during the last year. The combination of our internal and external growth activities outpaced headwinds of increased fuel efficiency for heavy duty truck engines, the impact of competition and a softness in freight volume, resulting in an increase in Adjusted EBITDA of 13.9% in the 2016 fourth quarter versus 2015. Our results also reflect continued improvement in financial contributions from our recently acquired sites, and I remain confident in the prospect of realizing the expected results from these investments."

Fourth Quarter 2016 Business Commentary

Fuel sales volume decreased by 8.6 million gallons, or 1.6%, in the 2016 fourth quarter compared to the 2015 fourth quarter primarily due to a decrease in same site fuel volume. The same site fuel sales volume decrease was attributed to fuel efficiency gains by TA’s commercial diesel fuel customers, new sites opened by competition and a relatively soft trucking freight environment. Fuel revenue increased by $45.8 million, or 5.1%, in the 2016 fourth quarter compared to the 2015 fourth quarter due to both newly acquired locations and same site results. Same site fuel revenues increased due to higher market prices for fuel, which was offset by lower volumes. Fuel gross margin decreased slightly by $2.2 million ($0.001 per gallon), to $101.1 million ($0.189 per gallon) primarily as a result of the decline in fuel volume.

Nonfuel revenue increased $26.2 million, or 5.8%, in the 2016 fourth quarter compared to the 2015 fourth quarter: $25.1 million of the increase was due to sites acquired since the beginning of the 2015 fourth quarter, while $1.1 million, or 0.2%, of the increase was attributable to same sites. Nonfuel gross margin increased $15.7 million, or 6.5%, in the 2016 fourth quarter compared to the 2015 fourth quarter primarily due to an $11.7 million increase from newly acquired locations, while $4.0 million of the increase was attributable to growth in same site nonfuel gross margin. Same site nonfuel gross margin in the 2016 fourth quarter was 54.2% of nonfuel revenue, compared to 53.4% in the 2015 fourth quarter, a change largely attributable to the positive impact of TA’s purchasing and pricing strategies and TA’s marketing initiatives.

Site level operating expenses increased $5.1 million, or 2.2%, in the 2016 fourth quarter compared to the 2015 fourth quarter: a $9.2 million increase due to locations acquired since the beginning of the 2015 fourth quarter, partially offset by a $4.1 million decrease in same site results. On a same site basis, site level operating expenses as a percentage of nonfuel revenues improved from the prior year quarter by 1.1% to 49.8%.

Selling, general and administrative expenses for the 2016 fourth quarter increased $2.9 million, or 8.6%, compared to the 2015 fourth quarter, principally as a result of increased personnel costs, which resulted from increased field management and corporate staffing required to support the growth of TA’s business, as well as planned increased spending on marketing and promotional activities.

Real estate rent expense increased $5.4 million, or 8.7%, in the 2016 fourth quarter compared to the 2015 fourth quarter primarily resulting from 2016 and 2015 sale and leaseback transactions with Hospitality Properties Trust, or HPT.

Net loss attributable to common shareholders for the 2016 fourth quarter was $6.5 million ($0.17 per common share) compared to $1.6 million ($0.04 per common share) for the 2015 fourth quarter. The change in net loss attributable to common shareholders was primarily due to increases in depreciation and amortization expenses, and expenses related to financing and managing newly acquired and developed locations (including real estate rent, interest and selling, general and administrative expenses), a decrease in fuel gross margin, and increased competition. These decreases were partially offset by an increase in nonfuel gross margin in excess of site level operating expenses generated by TA’s locations.

Adjusted EBITDA for the 2016 fourth quarter increased by $2.9 million, or 13.9%, as compared to the 2015 fourth quarter. Adjusted EBITDA increased as a result of the increase in nonfuel gross margin due to both same sites and newly acquired locations, partially offset by increases in site level operating expenses due to newly acquired locations and a decrease in fuel gross margin.

Travel Centers Segment

Both fuel and nonfuel revenues increased, resulting in an increase in total revenues of $30.6 million, or 2.6%, in the 2016 fourth quarter compared to the 2015 fourth quarter. The increase in total revenues was primarily due to increases in fuel prices on a same site basis, plus the addition of new locations opened during 2016.

Site level gross margin in excess of site level operating expenses increased in the 2016 fourth quarter by $2.7 million, or 2.4%, as compared to the 2015 fourth quarter principally due to an increase in nonfuel gross margin and a decrease in operating expenses on a same site basis, partially offset by a decrease in fuel gross margin.

Convenience Stores Segment

Both fuel and nonfuel revenues increased, resulting in an increase in total revenues of $34.1 million, or 22.8%, in the 2016 fourth quarter compared to the 2015 fourth quarter. The increases in both fuel and nonfuel revenues were due to locations acquired since the beginning of the 2015 fourth quarter (49 locations).

Site level gross margin in excess of site level operating expenses increased in the 2016 fourth quarter by $4.7 million, or 97.0%, as compared to the 2015 fourth quarter due to improvements at same sites and the addition of locations acquired in 2015 and 2016.

Investment and Growth Activities

From the beginning of 2011, when TA began its acquisition program, to December 31, 2016, TA has invested $855.0 million to develop, purchase and improve 318 travel centers, convenience stores and standalone restaurants. For the year ended December 31, 2016, these investments produced site level gross margin in excess of site level operating expenses of $100.0 million, or, on a sequential basis, $8.3 million, or 9.0%, greater than site level gross margin in excess of site level operating expenses for the twelve months ended September 30, 2016.

TA believes that its investments require a period after they are developed or acquired and upgrades are completed to reach their expected stabilized financial results, generally three years for travel centers and one year for convenience stores.

TA acquired or developed 39 travel centers during the 2011 to 2016 period. Of those, 36 are included in the "Travel Centers Segment Same Site Operating Data" for the year ended December 31, 2016 and 2015. As of December 31, 2016, TA has invested $312.1 million (including improvements) in these 36 locations, and they generated $54.3 million of gross margin in excess of site level operating expenses during the year ended December 31, 2016. The remaining three locations were developed by TA for a total investment of $64.9 million; and they generated $3.5 million of gross margin in excess of site level operating expenses during the year ended December 31, 2016; however, TA has operated these locations for less than the full year 2016 (one opened in each of January, March and May).

TA acquired 228 convenience stores during the 2013 to 2016 period. Of these, 31 are included in the "Convenience Store Segment Same Site Operating Data" for the year ended December 31, 2016 and 2015. As of December 31, 2016, TA has invested $66.5 million (including improvements) in these 31 locations, and they generated $11.6 million of gross margin in excess of site level operating expenses during the year ended December 31, 2016. The remaining 197 locations were acquired by TA in 2015 or 2016 for a total investment of $376.9 million (including improvements), and these convenience stores generated $23.2 million of gross margin in excess of site level operating expenses during the year ended December 31, 2016. The 29 convenience stores TA acquired during 2016 were operated by TA for an average of nine months during 2016 and some of these were fully or partially out of service while being renovated.

TA acquired one standalone restaurant during 2015 and 50 during 2016. As of December 31, 2016, TA has invested $34.7 million (including improvements) in these 51 locations, and they generated $7.3 million of gross margin in excess of site level operating expenses during the year ended December 31, 2016.

TA’s growth activities have also contributed to growth in its selling, general and administrative expenses, which were $139.1 million for the year ended December 31, 2016, a $17.3 million, or 14.2% increase over the amount for the year ended December 31, 2015. TA estimates that approximately $10.0 million of this increase can be attributed to the increase in TA’s number of sites, including such items as marketing, advertising, regional management personnel and centralized corporate function support costs.

Other Growth Initiatives

TA’s business requires TA to deliver a myriad of goods and services to multiple customer types from each of TA’s locations. TA’s business, in particular the travel center segment, also requires significant capital expenditures to remain competitive.

In addition to the investments in new locations described above, TA made capital expenditures of $253.7 million in its business in 2016, some of which were improvements of the type TA typically sells to HPT for an increase in rent and some of which were not yet complete as of December 31, 2016. TA believes that approximately $79.9 million of this amount can be considered to be investments to maintain its product quality and competitive position, while the remainder, or $173.8 million, can be considered to be investments designed to provide incremental returns to TA. These returns on investments may not exceed the cost of capital invested on a short term basis. TA does expect, however, that on a longer term basis, and especially during periods of economic and industry expansion, these investments may provide attractive returns.

TA is currently undertaking several internal growth initiatives that TA believes have the potential to grow its profitability and that are geared toward a combination of (a) developing and deploying new products and services to be delivered to existing customers and (b) delivering existing and new products and services to new customers.

Conference Call:

On Tuesday, February 28, 2017, 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 and year ended December 31, 2016. 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 10099937.

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 nationwide business includes travel centers located in 43 U.S. states and in Canada, standalone convenience stores in 11 states and standalone restaurants in 15 states. 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 services, travel/convenience stores and other services which are designed to provide attractive and efficient travel experiences to professional drivers and other motorists. TA’s 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, some fresh foods and other convenience items. TA’s standalone restaurants operate principally under the "Quaker Steak & Lube" brand name.

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," "WILL," "MAY" AND NEGATIVES OR DERIVATIVES OF THESE 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 TA’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. AMONG OTHERS, THE FORWARD LOOKING STATEMENTS WHICH APPEAR IN THIS PRESS RELEASE THAT MAY NOT OCCUR INCLUDE STATEMENTS THAT:

-- TA’S CEO, MR. O’BRIEN, STATES IN THIS PRESS RELEASE THAT TA’S INTERNAL AND EXTERNAL GROWTH ACTIVITIES HAD A FAVORABLE EFFECT ON TA’S RESULTS AND HIS CONFIDENCE IN THE PROSPECT OF TA REALIZING THE EXPECTED RESULTS FROM TA’S INVESTMENTS IN ITS ACQUISITION, IMPROVEMENT AND DEVELOPMENT OF NEW SITES AND OTHER GROWTH INITIATIVES. THESE STATEMENTS MAY IMPLY THAT TA’S GROWTH STRATEGIES WILL GENERATE INCREASED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS. HOWEVER, MANY OF THE LOCATIONS TA HAS ACQUIRED OR MAY ACQUIRE PRODUCED OPERATING RESULTS THAT CAUSED THE PRIOR OWNERS TO EXIT THE BUSINESSES AND TA’S ABILITY TO OPERATE THESE LOCATIONS PROFITABLY DEPENDS UPON MANY FACTORS, SOME OF WHICH ARE BEYOND TA’S CONTROL. FURTHER, TA’S BUSINESS INITIATIVES MAY FAIL, OR NOT CONTRIBUTE SUFFICIENTLY TO TA’S RESULTS TO OVERCOME INCREASING DIESEL ENGINE EFFICIENCY, CHANGES IN THE ECONOMY, THE EFFECTS OF COMPETITION OR OTHER FACTORS. ACCORDINGLY, TA MAY NOT GENERATE INCREASED NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS OR IT MAY TAKE LONGER THAN TA EXPECTS FOR ITS NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS TO INCREASE.

-- THIS PRESS RELEASE NOTES THAT TA IS CURRENTLY UNDERTAKING SEVERAL INTERNAL GROWTH INITIATIVES THAT TA BELIEVES HAVE THE POTENTIAL TO GROW ITS PROFITABILITY AND THAT ARE GEARED TOWARD INCREASING PRODUCTS AND SERVICES IT SELLS TO ITS EXISTING AND PROSPECTIVE CUSTOMERS. TA MAY NOT REALIZE THE BENEFITS IT EXPECTS FROM THESE INITIATIVES AND COSTS IT INCURS IN DESIGNING, IMPLEMENTING AND EXECUTING THESE INITIATIVES MAY EXCEED ANY BENEFITS IT MAY REALIZE FROM THEM.

THE INFORMATION CONTAINED IN TA’S PERIODIC REPORTS, INCLUDING TA’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2016, WHICH HAS BEEN OR WILL BE FILED WITH THE U.S. 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 STATEMENT AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

                                                                  
                                                                                               TRAVELCENTERS OF AMERICA LLC
                                                                                     CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                                                         (in thousands, except per share amounts)
                                                                                                          
                                                                                                                                                        Three Months Ended
                                                                                                                                                           December 31,
                                                                                                         ---------------------------------------------------------------------------------------------------------
                                                                                                                        2016                                   2015
                                                                                                         ----------------------------------                                          -------------------------------------
Revenues:
  Fuel                                                                                                      $ 941,852                                                                      $ 896,049
  Nonfuel                                                                                                     478,218                                                                        451,975
  Rent and royalties from franchisees                                                                           4,217                                                       3,032  
                                                                                                         ---------------------------------                                           ------------------------------------
Total revenues                                                                                              1,424,287                                                   1,351,056  
                                                                                                         ---------------------------------                                           ------------------------------------
                                                                                                                                                                                      
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                        840,802                                                                        792,779
  Nonfuel                                                                                                     221,865                                                     211,366  
                                                                                                         ---------------------------------                                           ------------------------------------
Total cost of goods sold                                                                                    1,062,667                                                   1,004,145  
                                                                                                         ---------------------------------                                           ------------------------------------
                                                                                                                                                                                      
Operating expenses:
  Site level operating                                                                                        233,653                                                                        228,513
  Selling, general and administrative                                                                          37,265                                                                         34,329
  Real estate rent                                                                                             67,460                                                                         62,063
  Depreciation and amortization                                                                                27,844                                                      19,297  
                                                                                                         ---------------------------------                                           ------------------------------------
Total operating expenses                                                                                      366,222                                                     344,202  
                                                                                                         ---------------------------------                                           ------------------------------------
                                                                                                                                                                                      
(Loss) income from operations                                                                                  (4,602 )                                                                        2,709
                                                                                                                                                                                      
  Acquisition costs                                                                                               165                                                                          1,752
  Interest expense, net                                                                                         7,054                                                                          6,084
  Income from equity investees                                                                                    972                                                         900  
                                                                                                         ---------------------------------                                           ------------------------------------
Loss before income taxes                                                                                      (10,849 )                                                                       (4,227 )
  Benefit for income taxes                                                                                     (4,304 )                                                                       (2,619 )
                                                                                                         ---------------------------------                                           ------------------------------------
Net loss                                                                                                       (6,545 )                                                                       (1,608 )
  Less net loss for noncontrolling interests                                                                      (52 )                                                               --  
                                                                                                         ---------------------------------                                           ------------------------------------
Net loss attributable to common shareholders                                                                $  (6,493 )                                                                    $  (1,608 )
                                                                                                         ==== ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                      
Net loss per common share attributable to common shareholders:
  Basic and diluted                                                                                         $   (0.17 )                                                                    $   (0.04 )
                                                                                                         ==== ======= ====================                                           ======= ======= ====================
                                                                                                                                                                                                      

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2016, to be filed with the U.S. Securities and Exchange Commission.

                                                             
                                                                                            TRAVELCENTERS OF AMERICA LLC
                                                                                  CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
                                                                                      (in thousands, except per share amounts)
                                                                                                     
                                                                                                                                                       Year Ended
                                                                                                                                                      December 31,
                                                                                                    ----------------------------------------------------------------------------------------------------------
                                                                                                                     2016                                    2015
                                                                                                    ---------------------------------------                                          --------------------------------
Revenues:
  Fuel                                                                                                    $ 3,530,149                                                                         $            4,055,448
  Nonfuel                                                                                                   1,963,904                                                                                      1,782,761
  Rent and royalties from franchisees                                                                          17,352                                                                      12,424
                                                                                                    --------------------------------------                                           --------------------------------
Total revenues                                                                                              5,511,405                                                                   5,850,633
                                                                                                    --------------------------------------                                           --------------------------------
                                                                                                                                                                                      
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                      3,125,372                                                                                      3,640,954
  Nonfuel                                                                                                     910,827                                                                     819,995
                                                                                                    --------------------------------------                                           --------------------------------
Total cost of goods sold                                                                                    4,036,199                                                                   4,460,949
                                                                                                    --------------------------------------                                           --------------------------------
                                                                                                                                                                                      
Operating expenses:
  Site level operating                                                                                        959,407                                                                                        885,646
  Selling, general and administrative                                                                         139,052                                                                                        121,767
  Real estate rent                                                                                            262,298                                                                                        231,591
  Depreciation and amortization                                                                                92,389                                                                      72,383
                                                                                                    --------------------------------------                                           --------------------------------
Total operating expenses                                                                                    1,453,146                                                                   1,311,387
                                                                                                    --------------------------------------                                           --------------------------------
                                                                                                                                                                                      
Income from operations                                                                                         22,060                                                                                         78,297
                                                                                                                                                                                      
  Acquisition costs                                                                                             2,451                                                                                          5,048
  Interest expense, net                                                                                        27,815                                                                                         22,545
  Income from equity investees                                                                                  4,544                                                                                          4,056
  Loss on extinguishment of debt                                                                       --                                                                      10,502
                                                                                                    --------------------------------------                                           --------------------------------
(Loss) income before income taxes                                                                              (3,662 )                                                                                       44,258
  (Benefit) provision for income taxes                                                                         (1,733 )                                                                                       16,539
                                                                                                    --------------------------------------                                           --------------------------------
Net (loss) income                                                                                              (1,929 )                                                                                       27,719
  Less net income for noncontrolling interests                                                                     89                                                              --
                                                                                                    --------------------------------------                                           --------------------------------
Net (loss) income attributable to common shareholders                                                     $    (2,018 )                                                                       $               27,719
                                                                                                    ======= ========= ====================                                           ========== ====================
                                                                                                                                                                                      
Net (loss) income per common share attributable to common
shareholders:
  Basic and diluted                                                                                       $     (0.05 )                                                                       $                 0.72
                                                                                                    ======= ========= ====================                                           ========== ====================
                                                                                                                                                                                                 

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2016, 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,
                                                                                                                               2016                                                                        2015
                                                                                                               ---------------------------------                                             ------------------------------
Assets
  Current assets:
  Cash and cash equivalents                                                                                       $    61,312                                                                         $              172,087
  Accounts receivable, net                                                                                            107,246                                                                                         91,580
  Inventory                                                                                                           207,829                                                                                        183,492
  Other current assets                                                                                                 25,674                                                                      48,181
                                                                                                               -----------------------------------                                           --------------------------------
    Total current assets                                                                                              402,061                                                                                        495,340
                                                                                                                                                                                              
Property and equipment, net                                                                                         1,082,022                                                                                        989,606
Goodwill                                                                                                               88,542                                                                                         79,768
Other intangible assets, net                                                                                           37,738                                                                                         26,209
Other noncurrent assets                                                                                                49,478                                                                      30,618
                                                                                                               -----------------------------------                                           --------------------------------
Total assets                                                                                                      $ 1,659,841                                                      $            1,621,541
                                                                                                               ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                              
Liabilities and Shareholders’ Equity
  Current liabilities:
  Accounts payable                                                                                                $   157,964                                                                         $              125,079
  Current HPT Leases liabilities                                                                                       39,720                                                                                         37,030
  Other current liabilities                                                                                           132,648                                                                     133,513
                                                                                                               -----------------------------------                                           --------------------------------
    Total current liabilities                                                                                         330,332                                                                                        295,622
                                                                                                                                                                                              
Long term debt, net                                                                                                   318,739                                                                                        316,447
Noncurrent HPT Leases liabilities                                                                                     381,854                                                                                        385,498
Other noncurrent liabilities                                                                                           75,837                                                                      74,655
                                                                                                               -----------------------------------                                           --------------------------------
Total liabilities                                                                                                   1,106,762                                                                                      1,072,222
                                                                                                                                                                                              
Shareholders’ equity (39,523 and 38,808 common shares outstanding at                                                  553,079                                                                     549,319
December 31, 2016 and December 31, 2015, respectively)
                                                                                                               -------------  --------------------                                           ------------------------------
Total liabilities and shareholders’ equity                                                                        $ 1,659,841                                                      $            1,621,541
                                                                                                               ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                                         

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2016, to be filed with the U.S. Securities and Exchange Commission.

TRAVELCENTERS OF AMERICA LLC RECONCILIATION OF NON-GAAP FINANCIAL MEASURES (in thousands)

Non-GAAP financial measures are financial measures that are not determined in accordance with GAAP. TA believes the non-GAAP financial measures presented in the table below are meaningful supplemental disclosures because they may help investors gain a better understanding of changes in TA’s operating results and its ability to pay rent or service debt, make capital expenditures and expand its business. These non-GAAP financial measures also may help investors to make comparisons between TA and other companies on both a GAAP and a non-GAAP basis. TA calculates Adjusted EBITDA as earnings before interest, taxes, depreciation and amortization and loss on extinguishment of debt, as shown below. TA believes that Adjusted EBITDA is a meaningful disclosure that may help investors to better understand its financial performance, including by allowing investors to compare TA’s performance between periods and to the performance of other companies. Adjusted EBITDA is used by management to evaluate TA’s financial performance and compare TA’s performance over time and to the performance of its competitors. This information should not be considered as an alternative to net income or income from operations, as an indicator of TA’s operating performance or as a measure of TA’s liquidity. Also, Adjusted EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.

TA believes that net (loss) income attributable to common shareholders is the most comparable financial measure, determined according to GAAP, to TA’s presentation of Adjusted EBITDA. The following table presents the reconciliation of this non-GAAP financial measure to net (loss) income attributable to common shareholders for the three months and year ended December 31, 2016 and 2015.

                                                                                                                                                                                 
                                                                                                                                                 Three Months Ended                                                                                                                                          Year Ended
                                                                                                                                                    December 31,                                                                                                                                            December 31,
                                                                                                ------------------------------------------------------------------------------------------------------------                                                  -------------------------------------------------------------------------------------------------
                                                                                                                2016                                     2015                                                                           2016                               2015
                                                                                                -------------------------------------                                          -------------------------------------                                          -------------------------------------                                          -------------------------
Calculation of Adjusted EBITDA:
Net (loss) income attributable to common shareholders                                                 $  (6,493 )                                                                    $  (1,608 )                                                                    $  (2,018 )                                                                $               27,719
  Add: (benefit) provision for income taxes                                                              (4,304 )                                                                       (2,619 )                                                                       (1,733 )                                                                                16,539
  Add: depreciation and amortization                                                                     27,844                                                                         19,297                                                                         92,389                                                                                  72,383
  Add: interest expense, net                                                                              7,054                                                                          6,084                                                                         27,815                                                                                  22,545
  Add: loss on extinguishment of debt                                                            --                                              --                                              --                                                               10,502
                                                                                                ------------------------------------                                           ------------------------------------                                           ------------------------------------                                           -------------------------
Adjusted EBITDA                                                                                       $  24,101                                                   $  21,154                                                   $ 116,453                                               $              149,688
                                                                                                ======= ======= ====================                                           ======= ======= ====================                                           ======= ======= ====================                                           === ====================
                                                                                                                                                                                                                                                                                                                                                  

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

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, 2016, that were operated by TA continuously since the beginning of the earliest period presented, with the exception of five locations TA operates that are owned by an unconsolidated joint venture in which TA owns a noncontrolling interest. 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. TA does not exclude locations from the same site comparisons as a result of capital improvements to the site or changes in the services offered.

                                                                                                                                                                                                                                                                                                      
                                                                                                                            Three Months Ended                                                                                                                                                                                                         Year Ended
                                                                                                                               December 31,                                                                                                                                                                                                           December 31,
                                                                               ----------------------------------------------------------------------------------------------------                                                                                                                ----------------------------------------------------------------------------------------------------------
                                                                                             2016                                 2015                                                                Change                                                                 2016                                    2015                                                                         Change
                                                                               ---------------------------------                                          ---------------------------------                                          --------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of same site company                                                            401                                                                        401                                                                --                                                           249                                                                           249                                                                --
operated locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Diesel sales volume (gallons)                                                      391,259                                                                    415,681                                                                          (5.9 ) %                                                 1,608,676                                                                     1,695,051                                                                          (5.1          ) %
Gasoline sales volume (gallons)                                                    118,394                                                 115,014                                                        2.9   %                                                   315,896                                                    314,294                                                        0.5                    %
                                                                               --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                509,653                                                 530,695                                                       (4.0 ) %                                                 1,924,572                                                  2,009,345                                                       (4.2          ) %
                                                                               --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Fuel revenues                                                                    $ 895,923                                                                  $ 872,995                                                                           2.6   %                                               $ 3,061,682                                                                   $ 3,827,635                                                                         (20.0          ) %
Fuel gross margin                                                                   97,657                                                                    102,659                                                                          (4.9 ) %                                                   355,937                                                                       395,362                                                                         (10.0          ) %
Fuel gross margin per gallon                                                     $   0.192                                                                  $   0.193                                                                          (0.5 ) %                                               $     0.185                                                                   $     0.197                                                                          (6.1          ) %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Nonfuel revenues                                                                 $ 448,324                                                                  $ 447,270                                                                           0.2   %                                               $ 1,697,635                                                                   $ 1,698,640                                                                          (0.1          ) %
Nonfuel gross margin                                                               242,876                                                                    238,831                                                                           1.7   %                                                   957,573                                                                       937,642                                                                           2.1                    %
Nonfuel gross margin percentage                                                       54.2 %                                                                     53.4 %                                                                          80 pts                                                      56.4 %                                                                        55.2 %                                                                         120          pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Total gross margin                                                               $ 340,533                                                                  $ 341,490                                                                          (0.3 ) %                                               $ 1,313,510                                                                   $ 1,333,004                                                                          (1.5          ) %
Site level operating expenses                                                      223,403                                                                    227,455                                                                          (1.8 ) %                                                   850,386                                                                       850,043                                                                --                    %
Site level operating expenses as a                                                    49.8 %                                                                     50.9 %                                                                        (110 )pts                                                     50.1 %                                                                        50.0 %                                                                          10          pts
percentage of nonfuel revenues
Site level gross margin in excess of                                             $ 117,130                                                                  $ 114,035                                                                           2.7   %                                               $   463,124                                                                   $   482,961                                                                          (4.1          ) %
site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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

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, 2016, that were operated by TA continuously since the beginning of the earliest period presented, with the exception of two travel centers TA operates that are owned by an unconsolidated joint venture in which TA owns a noncontrolling interest. This data also 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. TA does not exclude locations from the same site comparisons as a result of capital improvements to the site or changes in the services offered.

                                                                                                                                                                                                                                                                                                      
                                                                                                                            Three Months Ended                                                                                                                                                                                                         Year Ended
                                                                                                                               December 31,                                                                                                                                                                                                           December 31,
                                                                               ----------------------------------------------------------------------------------------------------                                                                                                                ----------------------------------------------------------------------------------------------------------
Travel Centers                                                                               2016                                 2015                                                                Change                                                                 2016                                    2015                                                                         Change
------------------------------------                                           ---------------------------------                                          ---------------------------------                                          --------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of same site company                                                            220                                                                        220                                                                --                                                           217                                                                           217                                                                --
operated travel center locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Diesel sales volume (gallons)                                                      387,226                                                                    412,177                                                                          (6.1 ) %                                                 1,605,279                                                                     1,691,991                                                                          (5.1          ) %
Gasoline sales volume (gallons)                                                     69,674                                                  66,467                                                        4.8   %                                                   278,235                                                    275,664                                                        0.9                    %
                                                                               --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                456,900                                                 478,644                                                       (4.5 ) %                                                 1,883,514                                                  1,967,655                                                       (4.3          ) %
                                                                               --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Fuel revenues                                                                    $ 804,678                                                                  $ 786,036                                                                           2.4   %                                               $ 2,994,344                                                                   $ 3,749,929                                                                         (20.1          ) %
Fuel gross margin                                                                   86,735                                                                     91,644                                                                          (5.4 ) %                                                   346,836                                                                       386,412                                                                         (10.2          ) %
Fuel gross margin per gallon                                                     $   0.190                                                                  $   0.191                                                                          (0.5 ) %                                               $     0.184                                                                   $     0.196                                                                          (6.1          ) %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Nonfuel revenues                                                                 $ 390,381                                                                  $ 391,241                                                                          (0.2 ) %                                               $ 1,617,598                                                                   $ 1,618,983                                                                          (0.1          ) %
Nonfuel gross margin                                                               224,772                                                                    222,890                                                                           0.8   %                                                   931,315                                                                       911,677                                                                           2.2                    %
Nonfuel gross margin percentage                                                       57.6                    %                                                  57.0                    %                                                       60 pts                                                      57.6                    %                                                     56.3                    %                                                      130          pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Total gross margin                                                               $ 311,507                                                                  $ 314,534                                                                          (1.0 ) %                                               $ 1,278,151                                                                   $ 1,298,089                                                                          (1.5          ) %
Site level operating expenses                                                      202,121                                                                    205,370                                                                          (1.6 ) %                                                   828,390                                                                       827,603                                                                           0.1                    %
Site level operating expenses as a                                                    51.8                    %                                                  52.5                    %                                                      (70 )pts                                                     51.2                    %                                                     51.1                    %                                                       10          pts
percentage of nonfuel revenues
Site level gross margin in excess of                                             $ 109,386                                                                  $ 109,164                                                                           0.2   %                                               $   449,761                                                                   $   470,486                                                                          (4.4          ) %
site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                               

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

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, 2016, that were operated by TA continuously since the beginning of the earliest period presented, with the exception of three convenience stores TA operates that are owned by an unconsolidated joint venture in which TA owns a noncontrolling interest. This data also excludes revenues and expenses that were not generated at convenience stores TA operates, such as revenues from a dealer operated convenience store and corporate level selling, general and administrative expenses. TA does not exclude locations from the same site comparisons as a result of capital improvements to the site or changes in the services offered.

                                                                                                                                                                                                                  
                                                                                                         Three Months Ended                                                                                                                                                               Year Ended
                                                                                                            December 31,                                                                                                                                                                 December 31,
                                                                               --------------------------------------------------------------                                                                                                                ------------------------------------------------------------
Convenience Stores                                                                  2016              2015                                                      Change                                                     2016             2015                                                              Change
------------------------------------                                           --------------                                          --------------                                          --------------------                                          -------------                                          -------------                                          ------------------------------------
Number of same site company                                                           181                                                     181                                              --                                                        32                                                     32                                             --
operated convenience store
locations
                                                                                                                                                                                                                                                                                                                                                                            
Fuel sales volume (gallons)                                                        52,753                                                  52,051                                                         1.3   %                                                41,058                                                 41,690                                                       (1.5 ) %
Fuel revenues                                                                    $ 91,245                                                $ 86,959                                                         4.9   %                                              $ 67,338                                               $ 77,706                                                      (13.3 ) %
Fuel gross margin                                                                  10,922                                                  11,015                                                        (0.8 ) %                                                 9,101                                                  8,950                                                        1.7           %
Fuel gross margin per gallon                                                     $  0.207                                                $  0.212                                                        (2.4 ) %                                              $  0.222                                               $  0.215                                                        3.3           %
                                                                                                                                                                                                                                                                                                                                                                            
Nonfuel revenues                                                                 $ 57,943                                                $ 56,029                                                         3.4   %                                              $ 80,037                                               $ 79,657                                                        0.5           %
Nonfuel gross margin                                                               18,104                                                  15,941                                                        13.6   %                                                26,258                                                 25,965                                                        1.1           %
Nonfuel gross margin percentage                                                      31.2  %                                                 28.5  %                                                      270 pts                                                  32.8 %                                                 32.6 %                                                       20 pts
                                                                                                                                                                                                                                                                                                                                                                            
Total gross margin                                                               $ 29,026                                                $ 26,956                                                         7.7   %                                              $ 35,359                                               $ 34,915                                                        1.3           %
Site level operating expenses                                                      21,282                                                  22,085                                                        (3.6 ) %                                                21,996                                                 22,440                                                       (2.0 ) %
Site level operating expenses as a                                                   36.7  %                                                 39.4  %                                                     (270 )pts                                                 27.5 %                                                 28.2 %                                                      (70 )pts
percentage of nonfuel revenues
Site level gross margin in excess of                                             $  7,744                                                $  4,871                                                        59.0   %                                              $ 13,363                                               $ 12,475                                                        7.1           %
site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                           

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

The following tables present business segment information for travel centers and convenience stores, or TA’s reportable segments, for the three months ended and year ended December 31, 2016 and 2015.

                                                
                                                                                                                                                                                                       Three Months Ended December 31, 2016
                                                                                       ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Travel                             Convenience                           Corporate                           Consolidated
                                                                                                     Centers                                                                    Stores                                                                    and Other
                                                                                       -------------------------------                                             ------------------------------                                             -----------------------------                                             ---------------------------------
Revenues:
  Fuel                                                                                    $ 813,899                                                                  $ 109,548                                                                  $ 18,405                                                                     $ 941,852
  Nonfuel                                                                                   395,878                                                                     74,290                                                                     8,050                                                                       478,218
  Rent and royalties from franchisees                                                         3,072                                                      57                                                  1,088                                                      4,217  
                                                                                       ---------------------------------                                           --------------------------------                                           -------------------------------                                           -----------------------------------
Total revenues                                                                            1,212,849                                                 183,895                                                 27,543                                                  1,424,287  
                                                                                       ---------------------------------                                           --------------------------------                                           -------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                         
Site level gross margin in excess of                                                      $ 115,267                                               $   9,472                                               $  3,228                                                  $ 127,967  
site level operating expenses
                                                                                       ==== ======= ====================                                           === ======= ====================                                           === ====== ====================                                           ====== ======= ====================
                                                                                                                                                                                                                                                                                                                         
Corporate operating expenses:
  Selling, general and administrative                                                                                                                                                                                                           $ 37,265                                                                     $  37,265
  Real estate rent                                                                                                                                                                                                                                67,460                                                                        67,460
  Depreciation and amortization                                                                                                                                                                                                                   27,844                                                     27,844  
                                                                                                                                                                                                                                              -------------------------------                                           -----------------------------------
Loss from operations                                                                                                                                                                                                                                                                                                            (4,602 )
                                                                                                                                                                                                                                                                                                                         
  Acquisition costs                                                                                                                                                                                                                                  165                                                                           165
  Interest expense, net                                                                                                                                                                                                                            7,054                                                                         7,054
  Income from equity investees                                                                                                                                                                                                                       972                                                        972  
                                                                                                                                                                                                                                              -------------------------------                                           -----------------------------------
Loss before income taxes                                                                                                                                                                                                                                                                                                       (10,849 )
  Benefit for income taxes                                                                                                                                                                                                                        (4,304 )                                                                      (4,304 )
                                                                                                                                                                                                                                                         --------------------                                           -----------------------------------
Net loss                                                                                                                                                                                                                                                                                                                        (6,545 )
  Less net loss for noncontrolling interests                                                                                                                                                                                                                                                                                       (52 )
                                                                                                                                                                                                                                                                                                                        -----------------------------------
Net loss attributable to common shareholders                                                                                                                                                                                                                                                                                 $  (6,493 )
                                                                                                                                                                                                                                                                                                                        ====== ======= ====================
                                                                                                                                                                                                                                                                                                                                        

Supplemental data:

Gross margin                                                                                                                
  Fuel                                                                                                                                                                                        $  87,915                                                                                                               $ 12,995                                                                                                               $    140                                                                                                                   $    101,050
  Nonfuel                                                                                                                                                                                       228,601                                                                                                                 22,326                                                                                                                  5,426                                                                                                                        256,353
  Rent and royalties from franchisees                                                                                                                                                             3,072                                                                                                  57                                                                                               1,088                                                                                                       4,217
                                                                                                                                                                                         -----------------------------------                                                                                     ----------------------------------                                                                                     ----------------------------------                                                                                     ----------------------
Total gross margin                                                                                                                                                                            $ 319,588                                                                                            $ 35,378                                                                                            $  6,654                                                                                                $    361,620
                                                                                                                                                                                         ====== ======= ====================                                                                                     ====== ====== ====================                                                                                     ====== ====== ====================                                                                                     ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
Site level operating expenses                                                                                                                                                                 $ 204,321                                                                                            $ 25,906                                                                                            $  3,426                                                                                                $    233,653
                                                                                                                                                                                         ====== ======= ====================                                                                                     ====== ====== ====================                                                                                     ====== ====== ====================                                                                                     ========== ==========
                                                  
                                                                                                                                                                      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                                                                                      $ 787,008                                                                      $  90,293                                                                      $  18,748                                                                      $ 896,049
  Nonfuel                                                                                     392,179                                                                         59,519                                                                            277                                                                        451,975
  Rent and royalties from franchisees                                                           3,032                                              --                                              --                                                       3,032  
                                                                                         ---------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
Total revenues                                                                              1,182,219                                                     149,812                                                      19,025                                                   1,351,056  
                                                                                         ---------------------------------                                           ------------------------------------                                           ------------------------------------                                           ------------------------------------
                                                                                                                                                                                                                                                                                                                                    
Site level gross margin in excess of                                                        $ 112,555                                                   $   4,809                                                   $   1,034                                                   $ 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 )
  Less net income for noncontrolling interests                                                                                                                                                                                                                                                                                      --  
                                                                                                                                                                                                                                                                                                                                   ------------------------------------
Net loss attributable to common shareholders                                                                                                                                                                                                                                                                                             $  (1,608 )
                                                                                                                                                                                                                                                                                                                                   ======= ======= ====================
                                                                                                                                                                                                                                                                                                                                                    

Supplemental data:

Gross margin                                                                                                                                         
  Fuel                                                                                                                                                                                                             $  91,790                                                                                                                $  11,439                                                                                                                $      41                                                                                                                   $    103,270
  Nonfuel                                                                                                                                                                                                            223,582                                                                                                                   16,817                                                                                                                      210                                                                                                                        240,609
  Rent and royalties from franchisees                                                                                                                                                                                  3,032                                                                                        --                                                                                        --                                                                                                       3,032
                                                                                                                                                                                                              -----------------------------------                                                                                     ------------------------------------                                                                                     ------------------------------------                                                                                     ----------------------
Total gross margin                                                                                                                                                                                                 $ 318,404                                                                                             $  28,256                                                                                             $     251                                                                                                $    346,911
                                                                                                                                                                                                              ====== ======= ====================                                                                                     ======= ======= ====================                                                                                     ======= ======= ====================                                                                                     ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Site level operating expenses                                                                                                                                                                                      $ 205,849                                                                                             $  23,447                                                                                             $    (783 )                                                                                                                 $    228,513
                                                                                                                                                                                                              ====== ======= ====================                                                                                     ======= ======= ====================                                                                                     ======= ======= ====================                                                                                     ========== ==========
                                                  
                                                                                                                                                                   TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                             BUSINESS SEGMENT INFORMATION (UNAUDITED)
                                                                                                                                                                          (in thousands)
                                                                                          
                                                                                                                                                                                                                Year Ended December 31, 2016
                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                        Travel                              Convenience                           Corporate                             Consolidated
                                                                                                        Centers                                                                     Stores                                                                    and Other
                                                                                         ---------------------------------                                             ------------------------------                                             ------------------------------                                             -----------------------------------
Revenues
  Fuel                                                                                      $ 3,036,861                                                                  $ 420,747                                                                  $  72,541                                                                     $ 3,530,149
  Nonfuel                                                                                     1,644,411                                                                    294,852                                                                     24,641                                                                       1,963,904
  Rent and royalties from franchisees                                                            13,628                                                     306                                                   3,418                                                       17,352  
                                                                                         -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
Total revenues                                                                                4,694,900                                                 715,905                                                 100,600                                                    5,511,405  
                                                                                         -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                              
Site level gross margin in excess of                                                        $   468,912                                               $  36,660                                               $  10,227                                                  $   515,799  
site level operating expenses
                                                                                         ==== ========= ====================                                           === ======= ====================                                           === ======= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                              
Corporate operating expenses
  Selling, general and administrative                                                                                                                                                                                                               $ 139,052                                                                     $   139,052
  Real estate rent                                                                                                                                                                                                                                    262,298                                                                         262,298
  Depreciation and amortization                                                                                                                                                                                                                        92,389                                                       92,389  
                                                                                                                                                                                                                                                  --------------------------------                                           -------------------------------------
Income from operations                                                                                                                                                                                                                                                                                                                 22,060
                                                                                                                                                                                                                                                                                                                              
  Acquisition costs                                                                                                                                                                                                                                     2,451                                                                           2,451
  Interest expense, net                                                                                                                                                                                                                                27,815                                                                          27,815
  Income from equity investees                                                                                                                                                                                                                          4,544                                                        4,544  
                                                                                                                                                                                                                                                  --------------------------------                                           -------------------------------------
Loss before income taxes                                                                                                                                                                                                                                                                                                               (3,662 )
  Benefit for income taxes                                                                                                                                                                                                                             (1,733 )                                                                        (1,733 )
                                                                                                                                                                                                                                                  --------------------------------                                           -------------------------------------
Net loss                                                                                                                                                                                                                                                                                                                               (1,929 )
  Less net income for noncontrolling interests                                                                                                                                                                                                                                                                                             89  
                                                                                                                                                                                                                                                                                                                             -------------------------------------
Net loss attributable to common shareholders                                                                                                                                                                                                                                                                                      $    (2,018 )
                                                                                                                                                                                                                                                                                                                             ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                               

Supplemental data:

Gross margin                                                                                                               
  Fuel                                                                                                                                                                                                             $   352,361                                                                                          $  51,900                                                                                          $    516                                                                                              $              404,777
  Nonfuel                                                                                                                                                                                                              946,308                                                                                             90,047                                                                                            16,722                                                                                                           1,053,077
  Rent and royalties from franchisees                                                                                                                                                                                   13,628                                                                             306                                                                          3,418                                                                                           17,352
                                                                                                                                                                                                              -------------------------------------                                                                -----------------------------------                                                                ----------------------------------                                                                --------------------------------
Total gross margin                                                                                                                                                                                                 $ 1,312,297                                                                       $ 142,253                                                                       $ 20,656                                                                           $            1,475,206
                                                                                                                                                                                                              ====== ========= ====================                                                                ====== ======= ====================                                                                ====== ====== ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Site level operating expenses                                                                                                                                                                                      $   843,385                                                                       $ 105,593                                                                       $ 10,429                                                                           $              959,407
                                                                                                                                                                                                              ====== ========= ====================                                                                ====== ======= ====================                                                                ====== ====== ====================                                                                ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
                                                  
                                                                                                                                                               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                                                                                      $ 3,763,536                                                                      $ 224,894                                                                      $  67,018                                                                         $  4,055,448
  Nonfuel                                                                                     1,626,646                                                                        155,197                                                                            918                                                                            1,782,761
  Rent and royalties from franchisees                                                            12,424                                              --                                              --                                                            12,424
                                                                                         -----------------------------------                                           ------------------------------------                                           ------------------------------------                                           ----------------------
Total revenues                                                                                5,402,606                                                     380,091                                                      67,936                                                         5,850,633
                                                                                         -----------------------------------                                           ------------------------------------                                           ------------------------------------                                           ----------------------
                                                                                                                                                                                                                                                                                                                                      
Site level gross margin in excess of                                                        $   483,564                                                   $  17,259                                                   $   3,215                                                      $    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
  Less net income for noncontrolling interests                                                                                                                                                                                                                                                                                              --
                                                                                                                                                                                                                                                                                                                                     ----------------------
Net income attributable to common shareholders                                                                                                                                                                                                                                                                                                $     27,719
                                                                                                                                                                                                                                                                                                                                     ========== ==========

Supplemental data:

Gross margin                                                                                                                                     
  Fuel                                                                                                                                                                                                             $   388,502                                                                                           $  26,060                                                                                           $     (68 )                                                                                            $    414,494
  Nonfuel                                                                                                                                                                                                              915,794                                                                                              46,314                                                                                                 658                                                                                                   962,766
  Rent and royalties from franchisees                                                                                                                                                                                   12,424                                                                   --                                                                   --                                                                                 12,424
                                                                                                                                                                                                              -------------------------------------                                                                ------------------------------------                                                                ------------------------------------                                                                ----------------------
Total gross margin                                                                                                                                                                                                 $ 1,316,720                                                                        $  72,374                                                                        $     590                                                                           $  1,389,684
                                                                                                                                                                                                              ====== ========= ====================                                                                ======= ======= ====================                                                                ======= ======= ====================                                                                ========== ==========
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
Site level operating expenses                                                                                                                                                                                      $   833,156                                                                        $  55,115                                                                        $  (2,625 )                                                                                            $    885,646
                                                                                                                                                                                                              ====== ========= ====================                                                                ======= ======= ====================                                                                ======= ======= ====================                                                                ========== ==========

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170228005487r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20170228005487/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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