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TravelCenters of America LLC$3.97($.12)(2.93%)

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 TravelCenters of America LLC Announces Fourth Quarter and Full Year 2017 Financial Results
   Wednesday, February 28, 2018 7:00:01 AM ET

TravelCenters of America LLC (TA ) today announced financial results for the three months and year ended December 31, 2017:

                                                                                                                                                               
(in thousands, except per share and per gallon amounts)                                                                                                      Three Months Ended                                                                                                                           Year Ended
                                                                                                                                                                December 31,                                                                                                                             December 31,
                                                                                                                       --------------------------------------------------------------------------------------                                                  -----------------------------------------------------------------------------------------
                                                                                                                 2017                          2016                                                                 2017                           2016
                                                                                                  -----------------------------------                                          -----------------                                          ------------------------------------                                          -------------------
Total revenues                                                                                                           $ 1,584,765                                                $ 1,408,648                                                                   $ 6,051,593                                                  $ 5,451,124
Loss before income taxes                                                                                                     (27,069 )                                                  (10,849 )                                                                     (75,045 )                                                     (3,662 )
Net (loss) income                                                                                                            (20,593 )                                                   (6,545 )                                                                       9,394                                                       (1,929 )
Net (loss) income attributable to common shareholders                                                                        (20,625 )                                                   (6,493 )                                                                       9,262                                                       (2,018 )
                                                                                                                                                                                                                                                                                                                           
Net (loss) income per common share attributable to                                                                       $     (0.52 )                                              $     (0.17 )                                                                 $      0.23                                                  $     (0.05 )
common shareholders (basic and diluted)
                                                                                                                                                                                                                                                                                                                           
Supplemental Data:
  Fuel sales volume (gallons):
    Diesel fuel                                                                                                              397,445                                                    400,881                                                                     1,615,394                                                    1,660,976
    Gasoline                                                                                                                 132,790                                 134,945                                                    536,785                                   544,448  
                                                                                                                       ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
  Total fuel sales volume                                                                                                    530,235                                 535,826                                                  2,152,179                                 2,205,424  
                                                                                                                       ----------------------------------                         ----------------------------------                                           -----------------------------------                        -------------------------------------
                                                                                                                                                                                                                                                                                                                           
  Fuel revenues                                                                                                          $ 1,109,758                                                $   941,852                                                                   $ 4,090,912                                                  $ 3,530,149
  Fuel gross margin                                                                                                           97,775                                                    101,050                                                                       394,179                                                      404,777
  Fuel gross margin per gallon                                                                                           $     0.184                                                $     0.189                                                                   $     0.183                                                  $     0.184
                                                                                                                                                                                                                                                                                                                           
  Nonfuel revenues                                                                                                       $   471,158                                                $   462,579                                                                   $ 1,944,181                                                  $ 1,903,623
  Nonfuel gross margin                                                                                                       263,932                                                    256,353                                                                     1,084,352                                                    1,053,077
  Nonfuel gross margin percentage                                                                                               56.0                    %                                  55.4                    %                                                     55.8                    %                                    55.3                    %
                                                                                                                                                                                                                                                                                                                           
EBITDA(1)                                                                                                                $    17,438                                                $    24,049                                                                   $    83,333                                                  $   116,542
                                                                                                                                                                                                                                                                                                                                            


(1) A reconciliation from net (loss) income to earnings before interest, taxes, and depreciation and amortization, or EBITDA, appears in the supplemental data below. TA believes that net (loss) income is the most directly comparable financial measure calculated and presented in accordance with U.S. generally accepted accounting principles, or GAAP.

Andrew J. Rebholz, TA’s CEO, made the following statement regarding the 2017 fourth quarter results:

"TA’s net (loss) income and EBITDA results for both the fourth quarter and full year of 2017 were impacted by a number of items that affect comparability with prior year amounts and I believe distract from the successes TA achieved in our operations in the 2017 fourth quarter. Those successes include:

-- Nonfuel revenues in our travel center segment grew by 2.7% in the fourth quarter of 2017 versus the prior year quarter as our nonfuel efforts continued to improve, especially in the truck service area. In the 2017 fourth quarter, compared to the prior year quarter, TA realized improvements of 6.8% in tire unit sales, 50.6% in RoadSquad OnSite(R) mobile maintenance work orders, 6.1% in RoadSquad(R) roadside assistance work orders and 20.1% in Reserve-It!(R) parking reservations revenue.

-- Site level gross margin in excess of site level operating expenses in our convenience store segment grew by 2.7% over the prior year quarter (1.9 % on a same site basis).

-- TA also made some management organization changes that I believe will help our managers focus on controlling costs in the increasingly difficult competitive environment in which TA conducts its business.

-- The cost reduction initiatives TA began in the first half of 2017 resulted in approximately $4.6 million of savings in the 2017 fourth quarter. Many of these cost reductions were implemented during the second and third quarters of 2017 and I expect some incremental savings in 2018 from 2017 levels, primarily in the first and second quarters of 2018.

"For the fourth quarter of 2017, items affecting comparability of TA’s results to the prior year included $6.9 million of expense related to asset impairments and write offs, a $6.4 million income tax expense resulting from the new tax legislation, approximately $6.3 million of missing tax credit benefits as a result of the biodiesel blenders’ tax credit not being enacted during 2017 and $1.1 million of expenses related to retirement agreements with former officers.

"For the 2017 full year, the items affecting comparability with 2016 results included a $58.6 million income tax benefit related to our third quarter 2017 resolution of previously uncertain tax positions, approximately $23.3 million of missing tax credit benefit in 2017 due to the biodiesel blenders’ credit not being enacted during 2017, $16.5 million of expense related to asset impairments and write offs, and $9.7 million of legal expenses in 2017 related to our litigation with Comdata Inc., or Comdata, as well as the income tax and officer retirement expenses incurred in the fourth quarter."

Business Commentary

Fuel sales volume decreased by 5.6 million gallons, or 1.0%, and same site fuel sales volume decreased by 9.2 million gallons, or 1.8%, each for the 2017 fourth quarter compared to the 2016 fourth quarter. TA believes the fuel sales volume decreases experienced during the 2017 fourth quarter resulted primarily from increased competition, partially offset by recently acquired and developed locations. Fuel revenues increased by $167.9 million, or 17.8%, in the 2017 fourth quarter compared to the 2016 fourth quarter primarily due to higher market prices for fuel during the 2017 fourth quarter. Fuel gross margin decreased by $3.3 million compared to the 2016 fourth quarter primarily as a result of lower sales volume and the federal biodiesel fuel tax credit program that was in effect in 2016 but not in 2017. The federal biodiesel tax credit was retroactively reinstated for 2017 in legislation passed on February 8, 2018. TA expects to recognize approximately $23.3 million related to the biodiesel blenders’ credit reinstatement in the 2018 first quarter financial statements as a reduction to TA’s fuel cost of goods sold.

Nonfuel revenues increased $8.6 million, or 1.9%, in the 2017 fourth quarter compared to the 2016 fourth quarter, including a $6.9 million increase attributable to sites acquired and developed since the beginning of the 2016 fourth quarter and a $1.7 million same site increase. Nonfuel gross margin increased $7.6 million, or 3.0%, in the 2017 fourth quarter compared to the 2016 fourth quarter due to a $4.2 million increase from sites acquired and developed since the beginning of the 2016 fourth quarter and a $3.4 million, or 1.3%, increase in same site nonfuel gross margin. Nonfuel gross margin increased on a same site basis primarily as a result of the mix of products and services sold, partially offset by reduced restaurant business while TA was converting certain locations from full service to quick service restaurants, or QSRs, and the impact of closing certain restaurants during slower night time periods to increase profitability.

Site level operating expenses increased $4.1 million, or 1.7%, in the 2017 fourth quarter compared to the 2016 fourth quarter primarily due to a $3.7 million increase in site level operating expenses from sites acquired and developed since the beginning of the 2016 fourth quarter. Site level operating expenses as a percentage of nonfuel revenues remained unchanged for the 2017 fourth quarter compared to the 2016 fourth quarter at 50.5%.

Selling, general and administrative expenses for the 2017 fourth quarter increased $2.1 million, or 5.6%, compared to the 2016 fourth quarter, primarily as a result of increased personnel costs including approximately $1.1 million of expenses that resulted from the retirement agreements TA entered during 2017 with former officers, partially offset by certain cost control initiatives.

Real estate rent expense increased $2.9 million, or 4.3%, in the 2017 fourth quarter compared to the 2016 fourth quarter, primarily from TA’s sale to, and lease back from, Hospitality Properties Trust of a travel center and improvements at leased sites since the beginning of the 2016 fourth quarter.

Depreciation and amortization expense increased $9.4 million, or 33.8%, in the 2017 fourth quarter compared to the 2016 fourth quarter primarily resulting from a $5.4 million impairment charge relating to certain property and equipment at certain convenience store sites and a $1.5 million write off of certain other assets removed from service in the fourth quarter.

Net loss for the 2017 fourth quarter was $20.6 million compared to net loss of $6.5 million for the 2016 fourth quarter. Net loss attributable to common shareholders for the 2017 fourth quarter was $20.6 million ($0.52 per common share) compared to net loss attributable to common shareholders of $6.5 million ($0.17 per common share) for the 2016 fourth quarter. These increased losses in 2017 were primarily attributable to a $6.4 million income tax expense as a result of the revaluation of TA’s deferred tax assets and liabilities at the new corporate income tax rate of 21% established in the Tax Cuts and Jobs Act enacted in December 2017, a $5.4 million impairment charge relating to certain property and equipment and a $3.3 million decrease in fuel gross margin primarily as a result of lower fuel sales volume and the federal biodiesel fuel tax credit program that was in place in 2016 but not in 2017. These factors increasing TA’s net loss were partially offset by a $7.6 million increase in nonfuel gross margin primarily due to sites acquired and developed since the beginning of the 2016 fourth quarter and changes in the mix of products and services sold.

EBITDA for the 2017 fourth quarter decreased by $6.6 million, or 27.5%, as compared to the 2016 fourth quarter, primarily due to a $2.9 million increase in real estate rent expense, a $2.1 million increase in selling, general and administrative expenses and a $0.4 million decrease in site level gross margin in excess of site level operating expenses from same sites. These changes were partially offset by a $1.5 million increase in site level gross margin in excess of site level operating expenses from sites acquired and developed since the beginning of the 2016 fourth quarter.

Travel Centers Segment

Fuel sales volume decreased by 4.2 million gallons, or 0.9%, and same site fuel sales volume decreased by 8.7 million gallons, or 1.9%, for the 2017 fourth quarter compared to the 2016 fourth quarter. TA believes these decreases were primarily due to increased competition. Fuel revenues increased $151.5 million, or 18.6%, in the 2017 fourth quarter as compared to the 2016 fourth quarter primarily due to higher market prices for fuel and from sites acquired and developed since the beginning of the 2016 fourth quarter. Fuel gross margin decreased by $4.3 million, or 4.9%, to $83.6 million primarily as a result of the federal biodiesel fuel tax credit program that was in place in 2016 but not in 2017.

Nonfuel revenues increased $10.3 million, or 2.7%, in the 2017 fourth quarter compared to the 2016 fourth quarter primarily due to sites acquired and developed since the beginning of the 2016 fourth quarter and a $4.8 million, or 1.2%, increase due to same sites; the same site increase was lowered by reduced restaurant revenues while TA was converting certain locations from full service restaurants to QSRs and the impact of closing certain restaurants during slower night time periods to increase profitability. Nonfuel gross margin increased $7.1 million, or 3.1%, in the 2017 fourth quarter as compared to the 2016 fourth quarter due to the higher sales level and an increase in the nonfuel gross margin percentage. Nonfuel gross margin percentage was 59.1% in the 2017 fourth quarter as compared to 58.8% in the 2016 fourth quarter; the increased nonfuel gross margin percentage was primarily the result of changes in the mix of products and services sold and the reduction in operating hours of certain TA restaurants.

Site level gross margin in excess of site level operating expenses remained essentially unchanged in the 2017 fourth quarter compared to the 2016 fourth quarter primarily due to decreases at same sites, offset by increases from recently acquired and developed properties.

On a same site basis, (223 locations) site level gross margin in excess of site level operating expenses decreased in the 2017 fourth quarter by $0.4 million, or 0.4%, as compared to the 2016 fourth quarter, primarily due to a $5.3 million decrease in fuel gross margin that resulted primarily from lower sales volume and the federal biodiesel fuel tax credits that were available to TA in 2016 but were not available in 2017, partially offset by a $3.9 million increase in nonfuel gross margin primarily due to changes in the mix of products and services sold and a $1.0 million reduction in site level operating expenses primarily due to operating cost control measures, including reduced billboard advertising and reduced operating hours at certain TA restaurants.

Convenience Stores Segment

Fuel sales volume decreased by 0.5 million gallons, or 0.8%, for the 2017 fourth quarter as compared to the 2016 fourth quarter on both a consolidated and same site basis. This decrease was primarily due to increased competition. Fuel revenues increased $15.6 million, or 14.2%, in the 2017 fourth quarter as compared to the 2016 fourth quarter primarily due to higher market prices for fuel. Fuel gross margin increased by $0.8 million, or 6.3%, to $13.8 million primarily as a result of the continued improvement of operations at newer locations, partially offset by a decrease in fuel sales volume.

Nonfuel revenues decreased $2.1 million, or 3.3%, in the 2017 fourth quarter as compared to the 2016 fourth quarter primarily due to increased competition. Nonfuel gross margin increased $0.1 million, or 0.5%, in the 2017 fourth quarter as compared to the 2016 fourth quarter. Nonfuel gross margin percentage was 35.2% in the 2017 fourth quarter as compared to 33.9% in the 2016 fourth quarter. The increases in nonfuel gross margin and nonfuel gross margin percentage were primarily the result of changes in the mix of products and services sold.

Site level gross margin in excess of site level operating expenses increased in the 2017 fourth quarter by $0.3 million, or 2.7%, as compared to the 2016 fourth quarter primarily due to improvements at same sites.

On a same site basis, site level gross margin in excess of site level operating expenses increased by $0.2 million, or 1.9%, in the 2017 fourth quarter as compared to the 2016 fourth quarter due to increases in fuel gross margin of $0.8 million, or 6.3%, primarily due to the continued improvement of operations at newer sites, and nonfuel gross margin of $0.1 million, or 0.5%, primarily due to changes in the mix of products and services sold, partially offset by an increase of $0.8 million, or 2.9%, in site level operating expenses.

Conference Call:

On Wednesday, February 28, 2018, 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, 2017. 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 10115720.

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 13 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:

-- MR. REBHOLZ’S STATEMENTS REGARDING THE INCREASED VOLUME OF BUSINESS IN TA’S TRUCK REPAIR BUSINESS AND THE INCREASED GROSS MARGIN IN TA’S CONVENIENCE STORE SEGMENT DURING THE FOURTH QUARTER OF 2017 COMPARED TO THE FOURTH QUARTER OF 2016 MAY IMPLY THAT TA’S TRUCK REPAIR BUSINESS AND THE GROSS MARGINS REALIZED FROM TA’S CONVENIENCE STORE SEGMENT WILL CONTINUE TO GROW AND IMPROVE. IN FACT, BOTH TA’S TRUCK REPAIR BUSINESS AND TA’S CONVENIENCE STORE SEGMENT ARE EXPERIENCING INCREASED COMPETITION, AND, FOR THIS REASON, AMONG OTHERS, THESE ASPECTS OF TA’S BUSINESS MAY NOT GROW OR IMPROVE;

-- MR. REBHOLZ’S STATEMENT THAT TA’S COST REDUCTION INITIATIVES ARE EXPECTED TO PRODUCE INCREMENTAL SAVINGS IN 2018, PRIMARILY IN THE FIRST AND SECOND QUARTERS OF 2018, MAY NOT BE REALIZED. COST REDUCTION INITIATIVES MAY BE OFFSET BY INCREASED EXPENSES OR BY REDUCED VOLUMES OF BUSINESS. FOR THESE REASONS, AMONG OTHERS, THE IMPLICATION OF MR. REBHOLZ’S STATEMENT THAT TA’S COST REDUCTION INITIATIVES MAY REDUCE TA’S HISTORICAL LOSSES OR CREATE PROFITS MAY NOT OCCUR;

-- THE STATEMENT IN THIS PRESS RELEASE THAT TA EXPECTS TO RECOGNIZE APPROXIMATELY $23.3 MILLION OF 2017 RETROACTIVE BIODIESEL TAX CREDITS DURING THE FIRST QUARTER OF 2018 MAY IMPLY THAT TA’S OPERATIONS WILL PRODUCE PROFITS IN THE FIRST QUARTER OF 2018 OR THAT BIODIESEL TAX CREDITS WILL IMPROVE TA’S GROSS MARGINS IN THE FUTURE. IN FACT, THE RETROACTIVE 2017 $23.3 MILLION BIODIESEL TAX CREDIT MAY NOT BE SUFFICIENT TO OFFSET TA’S OPERATING LOSSES FOR THE FIRST QUARTER OF 2018. ALSO, THE BIODIESEL BLENDERS’ TAX CREDIT HAS NOT BEEN AUTHORIZED FOR 2018 AND TA DOES NOT KNOW IF, WHEN OR IN WHAT AMOUNTS THIS TAX CREDIT WILL BE REAUTHORIZED; AND

-- STATEMENTS IN THIS PRESS RELEASE ABOUT IMPROVED OPERATING RESULTS, COST SAVINGS AND INCREASING GROSS MARGINS MAY IMPLY THAT TA’S BUSINESS MAY BE PROFITABLE IN THE FUTURE. IN FACT, TA’S HISTORY OF OPERATIONS SINCE IT BECAME PUBLICLY OWNED IN 2007 HAS SHOWN ONLY OCCASIONAL PROFITS. TA MAY BE UNABLE TO PRODUCE FUTURE PROFITS AND TA’S LOSSES MAY INCREASE.

THE INFORMATION CONTAINED IN TA’S PERIODIC REPORTS, INCLUDING TA’S ANNUAL REPORT ON FORM 10-K FOR THE YEAR ENDED DECEMBER 31, 2017, 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,
                                                                                                                              ----------------------------------------------------------------------------------------------------------
                                                                                                                                              2017                                    2016
                                                                                                                              ------------------------------------                                          ------------------------------------
Revenues:
  Fuel                                                                                                                           $ 1,109,758                                                                     $ 941,852
  Nonfuel                                                                                                                            471,158                                                                       462,579
  Rent and royalties from franchisees                                                                                                  3,849                                                      4,217  
                                                                                                                              -----------------------------------                                           -----------------------------------
Total revenues                                                                                                                     1,584,765                                                  1,408,648  
                                                                                                                              -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                             
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                                             1,011,983                                                                       840,802
  Nonfuel                                                                                                                            207,226                                                    206,226  
                                                                                                                              -----------------------------------                                           -----------------------------------
Total cost of goods sold                                                                                                           1,219,209                                                  1,047,028  
                                                                                                                              -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                             
Operating expenses:
  Site level operating                                                                                                               237,727                                                                       233,653
  Selling, general and administrative                                                                                                 39,352                                                                        37,265
  Real estate rent                                                                                                                    70,385                                                                        67,460
  Depreciation and amortization                                                                                                       37,253                                                     27,844  
                                                                                                                              -----------------------------------                                           -----------------------------------
Total operating expenses                                                                                                             384,717                                                    366,222  
                                                                                                                              -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                             
Loss from operations                                                                                                                 (19,161 )                                                                      (4,602 )
                                                                                                                                                                                                             
  Acquisition costs                                                                                                                       11                                                                           165
  Interest expense, net                                                                                                                7,254                                                                         7,054
  (Loss) income from equity investees                                                                                                   (643 )                                                                         972  
                                                                                                                              -----------------------------------                                           -----------------------------------
Loss before income taxes                                                                                                             (27,069 )                                                                     (10,849 )
  Benefit for income taxes                                                                                                             6,476                                                      4,304  
                                                                                                                              -----------------------------------                                           -----------------------------------
Net loss                                                                                                                             (20,593 )                                                                      (6,545 )
  Less: net income (loss) for noncontrolling interests                                                                                    32                                                        (52 )
                                                                                                                              -----------------------------------                                           -----------------------------------
Net loss attributable to common shareholders                                                                                     $   (20,625 )                                                                   $  (6,493 )
                                                                                                                              ==== ========= ====================                                           ====== ======= ====================
                                                                                                                                                                                                             
Net loss per common share attributable to common shareholders:
  Basic and diluted                                                                                                              $     (0.52 )                                                                   $   (0.17 )
                                                                                                                              ==== ========= ====================                                           ====== ======= ====================
                                                                                                                                                                                                                            

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2017, 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,
                                                                                                                         ------------------------------------------------------------------------------------------------------------
                                                                                                                                         2017                                     2016
                                                                                                                         ------------------------------------                                          --------------------------------------
Revenues:
  Fuel                                                                                                                      $ 4,090,912                                                                     $ 3,530,149
  Nonfuel                                                                                                                     1,944,181                                                                       1,903,623
  Rent and royalties from franchisees                                                                                            16,500                                                       17,352  
                                                                                                                         -----------------------------------                                           -------------------------------------
Total revenues                                                                                                                6,051,593                                                    5,451,124  
                                                                                                                         -----------------------------------                                           -------------------------------------
                                                                                                                                                                                                        
Cost of goods sold (excluding depreciation):
  Fuel                                                                                                                        3,696,733                                                                       3,125,372
  Nonfuel                                                                                                                       859,829                                                      850,546  
                                                                                                                         -----------------------------------                                           -------------------------------------
Total cost of goods sold                                                                                                      4,556,562                                                    3,975,918  
                                                                                                                         -----------------------------------                                           -------------------------------------
                                                                                                                                                                                                        
Operating expenses:
  Site level operating                                                                                                          980,749                                                                         959,407
  Selling, general and administrative                                                                                           154,663                                                                         139,052
  Real estate rent                                                                                                              277,127                                                                         262,298
  Depreciation and amortization                                                                                                 128,416                                                       92,389  
                                                                                                                         -----------------------------------                                           -------------------------------------
Total operating expenses                                                                                                      1,540,955                                                    1,453,146  
                                                                                                                         -----------------------------------                                           -------------------------------------
                                                                                                                                                                                                        
(Loss) income from operations                                                                                                   (45,924 )                                                                        22,060
                                                                                                                                                                                                        
  Acquisition costs                                                                                                                 247                                                                           2,451
  Interest expense, net                                                                                                          29,962                                                                          27,815
  Income from equity investees                                                                                                    1,088                                                        4,544  
                                                                                                                         -----------------------------------                                           -------------------------------------
Loss before income taxes                                                                                                        (75,045 )                                                                        (3,662 )
  Benefit for income taxes                                                                                                       84,439                                                        1,733  
                                                                                                                         -----------------------------------                                           -------------------------------------
Net income (loss)                                                                                                                 9,394                                                                          (1,929 )
  Less: net income for noncontrolling interests                                                                                     132                                                           89  
                                                                                                                         -----------------------------------                                           -------------------------------------
Net income (loss) attributable to common shareholders                                                                       $     9,262                                                  $    (2,018 )
                                                                                                                         ==== ========= ====================                                           ====== ========= ====================
                                                                                                                                                                                                        
Net income (loss) per common share attributable to common
shareholders:
  Basic and diluted                                                                                                         $      0.23                                                  $     (0.05 )
                                                                                                                         ==== ========= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                         

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2017, 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,
                                                                                                                                                    2017                                                                        2016
                                                                                                                                    ---------------------------------                                             ------------------------------
Assets
Current assets:
  Cash and cash equivalents                                                                                                            $    36,082                                                                         $               61,312
  Accounts receivable, net                                                                                                                 125,501                                                                                        107,246
  Inventory                                                                                                                                209,640                                                                                        204,145
  Other current assets                                                                                                                      27,295                                                                      29,358
                                                                                                                                    -----------------------------------                                           --------------------------------
    Total current assets                                                                                                                   398,518                                                                                        402,061
                                                                                                                                                                                                                   
Property and equipment, net                                                                                                              1,001,090                                                                                      1,082,022
Goodwill                                                                                                                                    93,859                                                                                         88,542
Other intangible assets, net                                                                                                                34,383                                                                                         37,738
Other noncurrent assets                                                                                                                     90,004                                                                      49,478
                                                                                                                                    -----------------------------------                                           --------------------------------
Total assets                                                                                                                           $ 1,617,854                                                      $            1,659,841
                                                                                                                                    ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                                                   
Liabilities and Shareholders’ Equity
Current liabilities:
  Accounts payable                                                                                                                     $   155,581                                                                         $              157,964
  Current HPT Leases liabilities                                                                                                            41,389                                                                                         39,720
  Other current liabilities                                                                                                                130,140                                                                     132,648
                                                                                                                                    -----------------------------------                                           --------------------------------
    Total current liabilities                                                                                                              327,110                                                                                        330,332
                                                                                                                                                                                                                   
Long term debt, net                                                                                                                        319,634                                                                                        318,739
Noncurrent HPT Leases liabilities                                                                                                          368,782                                                                                        381,854
Other noncurrent liabilities                                                                                                                35,029                                                                      75,837
                                                                                                                                    -----------------------------------                                           --------------------------------
Total liabilities                                                                                                                        1,050,555                                                                                      1,106,762
                                                                                                                                                                                                                   
Shareholders’ equity (39,984 and 39,523 common shares outstanding at                                                                       567,299                                                                     553,079
December 31, 2017 and 2016, respectively)
                                                                                                                                    -------------  --------------------                                           ------------------------------
Total liabilities and shareholders’ equity                                                                                             $ 1,617,854                                                      $            1,659,841
                                                                                                                                    ==== ========= ====================                                           ========== ====================
                                                                                                                                                                                                                              

These financial statements should be read in conjunction with TA’s Annual Report on Form 10-K for the year ended December 31, 2017, 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 believes that 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. EBITDA is used by management to evaluate TA’s financial performance and compare TA’s performance over time and to the performance of other companies. TA calculates EBITDA as earnings before interest, taxes and depreciation and amortization, as shown below. This information should not be considered as an alternative to net (loss) income attributable to common shareholders, net (loss) income or (loss) income from operations, as an indicator of TA’s operating performance or as a measure of TA’s liquidity. Also, EBITDA as presented may not be comparable to similarly titled amounts calculated by other companies.

TA believes that net (loss) income is the most comparable financial measure, determined according to GAAP, to TA’s presentation of EBITDA. The following table presents the reconciliation of this non-GAAP financial measure to net (loss) income for the three months and years ended December 31, 2017 and 2016.

                                                                                                                                                         
                                                                                                                                                Three Months Ended                                                                                                                                       Year Ended
                                                                                                                                                   December 31,                                                                                                                                         December 31,
                                                                                                    ---------------------------------------------------------------------------------------------------                                                  ---------------------------------------------------------------------------------------------------
                                                                                                                  2017                                 2016                                                                      2017                                2016
                                                                                                    ---------------------------------                                          --------------------------------                                          --------------------------------                                          ---------------------------------
Calculation of EBITDA:
Net (loss) income                                                                                     $ (20,593 )                                                                $ (6,545 )                                                                $  9,394                                                                  $  (1,929 )
  Add: benefit for income taxes                                                                          (6,476 )                                                                  (4,304 )                                                                 (84,439 )                                                                   (1,733 )
  Add: depreciation and amortization                                                                     37,253                                                                    27,844                                                                   128,416                                                                     92,389
  Add: interest expense, net                                                                              7,254                                                  7,054                                                 29,962                                                  27,815  
                                                                                                    --------------------------------                                           -------------------------------                                           -------------------------------                                           --------------------------------
EBITDA                                                                                                $  17,438                                               $ 24,049                                               $ 83,333                                               $ 116,542  
                                                                                                    === ======= ====================                                           === ====== ====================                                           === ====== ====================                                           === ======= ====================
                                                                                                                                                                                                                                                                                                                                                

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, 2017, that were operated by TA continuously since the beginning of the earliest period presented, with the exception of six locations TA operates that are owned by an unconsolidated joint venture in which TA owns a noncontrolling interest. This data excludes revenues and expenses at locations TA does not operate, 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,
                                                                                                    ------------------------------------------------------------------------------------------------------                                                                                                                ----------------------------------------------------------------------------------------------------------
                                                                                                                   2017                                  2016                                                                Change                                                                 2017                                    2016                                                                         Change
                                                                                                    -----------------------------------                                          ---------------------------------                                          --------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of same site company                                                                                   463                                                                        463                                                                --                                                           420                                                                           420                                                                --
operated locations(1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Diesel sales volume (gallons)                                                                             389,961                                                                    396,288                                                                          (1.6 ) %                                                 1,571,099                                                                     1,629,055                                                                          (3.6 ) %
Gasoline sales volume (gallons)                                                                           126,437                                                 129,339                                                       (2.2 ) %                                                   483,360                                                    497,169                                                       (2.8 ) %
                                                                                                    ----------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                                       516,398                                                 525,627                                                       (1.8 ) %                                                 2,054,459                                                  2,126,224                                                       (3.4 ) %
                                                                                                    ----------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Fuel revenues                                                                                         $ 1,080,928                                                                  $ 923,414                                                                          17.1 %                                                 $ 3,902,495                                                                   $ 3,396,269                                                                          14.9 %
Fuel gross margin                                                                                          96,352                                                                    100,805                                                                          (4.4 ) %                                                   380,820                                                                       396,741                                                                          (4.0 ) %
Fuel gross margin per gallon                                                                          $     0.187                                                                  $   0.192                                                                          (2.6 ) %                                               $     0.185                                                                   $     0.187                                                                          (1.1 ) %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Nonfuel revenues                                                                                      $   463,646                                                                  $ 461,941                                                                           0.4 %                                                 $ 1,836,051                                                                   $ 1,836,157                                                                -- %
Nonfuel gross margin                                                                                      258,574                                                                    255,222                                                                           1.3 %                                                   1,025,542                                                                     1,018,381                                                                           0.7 %
Nonfuel gross margin percentage                                                                              55.8                    %                                                  55.2                    %                                                       60 pts                                                      55.9                    %                                                     55.5                    %                                                       40 pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
Total gross margin                                                                                    $   354,926                                                                  $ 356,027                                                                          (0.3 ) %                                               $ 1,406,362                                                                   $ 1,415,122                                                                          (0.6 ) %
Site level operating expenses                                                                             233,764                                                                    234,458                                                                          (0.3 ) %                                                   926,104                                                                       930,142                                                                          (0.4 ) %
Site level operating expenses as a                                                                           50.4                    %                                                  50.8                    %                                                      (40 )pts                                                     50.4                    %                                                     50.7                    %                                                      (30 )pts
percentage of nonfuel revenues
Site level gross margin in excess of                                                                  $   121,162                                                                  $ 121,569                                                                          (0.3 ) %                                               $   480,258                                                                   $   484,980                                                                          (1.0 ) %
site level operating expenses
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      

(1) Same site operations for the three months ended December 31, 2017, include 223 travel centers, 229 convenience stores and 11 standalone restaurants that TA operated since October 1, 2016. Same site operations for the year ended December 31, 2017, include 220 travel centers and 200 convenience stores that TA operated since January 1, 2016. The 11 standalone restaurants are not a separately reportable segment but are included in corporate and other in our segment information.

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, 2017, 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 at travel centers TA does not operate, 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                                                                                                    2017                                 2016                                                                Change                                                                 2017                                    2016                                                                         Change
------------------------------------                                                                ---------------------------------                                          ---------------------------------                                          --------------------                                          ------------------------------------                                          ------------------------------------                                          ------------------------------------
Number of same site company                                                                                 223                                                                        223                                                                --                                                           220                                                                           220                                                                --
operated travel center locations
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Diesel sales volume (gallons)                                                                           384,474                                                                    391,477                                                                          (1.8 ) %                                                 1,552,959                                                                     1,612,405                                                                          (3.7 ) %
Gasoline sales volume (gallons)                                                                          68,938                                                  70,655                                                       (2.4 ) %                                                   274,398                                                    281,285                                                       (2.4 ) %
                                                                                                    --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
  Total fuel sales volume (gallons)                                                                     453,412                                                 462,132                                                       (1.9 ) %                                                 1,827,357                                                  1,893,690                                                       (3.5 ) %
                                                                                                    --------------------------------                                           --------------------------------                                                                                                         -----------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Fuel revenues                                                                                         $ 955,787                                                                  $ 813,866                                                                          17.4 %                                                 $ 3,472,078                                                                   $ 3,011,216                                                                          15.3 %
Fuel gross margin                                                                                        82,536                                                                     87,810                                                                          (6.0 ) %                                                   329,399                                                                       348,554                                                                          (5.5 ) %
Fuel gross margin per gallon                                                                          $   0.182                                                                  $   0.190                                                                          (4.2 ) %                                               $     0.180                                                                   $     0.184                                                                          (2.2 ) %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Nonfuel revenues                                                                                      $ 393,345                                                                  $ 388,515                                                                           1.2 %                                                 $ 1,597,954                                                                   $ 1,596,816                                                                           0.1 %
Nonfuel gross margin                                                                                    231,651                                                                    227,792                                                                           1.7 %                                                     940,724                                                                       935,140                                                                           0.6 %
Nonfuel gross margin percentage                                                                            58.9                    %                                                  58.6                    %                                                       30 pts                                                      58.9                    %                                                     58.6                    %                                                       30 pts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Total gross margin                                                                                    $ 314,187                                                                  $ 315,602                                                                          (0.4 ) %                                               $ 1,270,123                                                                   $ 1,283,694                                                                          (1.1 ) %
Site level operating expenses                                                                           203,754                                                                    204,776                                                                          (0.5 ) %                                                   826,705                                                                       833,323                                                                          (0.8 ) %
Site level operating expenses as a                                                                         51.8                    %                                                  52.7                    %                                                      (90 )pts                                                     51.7                    %                                                     52.2                    %                                                      (50 )pts
percentage of nonfuel revenues
Site level gross margin in excess of                                                                  $ 110,433                                                                  $ 110,826                                                                          (0.4 ) %                                               $   443,418                                                                   $   450,371                                                                          (1.5 ) %
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, 2017, 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 at convenience stores TA does not operate, 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                                                                                       2017               2016                                                      Change                                                      2017              2016                                                              Change
------------------------------------                                                                ---------------                                          ---------------                                          -------------------                                          --------------                                          --------------                                          ------------------------------------
Number of same site company                                                                                 229                                                      229                                              --                                                       200                                                     200                                             --
operated convenience store
locations
                                                                                                                                                                                                                                                                                                                                                                                                    
Fuel sales volume (gallons)                                                                              62,986                                                   63,495                                                        (0.8 ) %                                               227,102                                                 232,534                                                       (2.3 ) %
Fuel revenues                                                                                         $ 125,141                                                $ 109,548                                                        14.2 %                                               $ 430,417                                               $ 385,053                                                       11.8 %
Fuel gross margin                                                                                        13,816                                                   12,995                                                         6.3 %                                                  51,421                                                  48,187                                                        6.7 %
Fuel gross margin per gallon                                                                          $   0.219                                                $   0.205                                                         6.8 %                                               $   0.226                                               $   0.207                                                        9.2 %
                                                                                                                                                                                                                                                                                                                                                                                                    
Nonfuel revenues                                                                                      $  63,715                                                $  65,859                                                        (3.3 ) %                                             $ 238,097                                               $ 239,341                                                       (0.5 ) %
Nonfuel gross margin                                                                                     22,448                                                   22,326                                                         0.5 %                                                  84,818                                                  83,241                                                        1.9 %
Nonfuel gross margin percentage                                                                            35.2 %                                                   33.9 %                                                       130 pts                                                  35.6 %                                                  34.8 %                                                       80 pts
                                                                                                                                                                                                                                                                                                                                                                                                    
Total gross margin                                                                                    $  36,264                                                $  35,321                                                         2.7 %                                               $ 136,239                                               $ 131,428                                                        3.7 %
Site level operating expenses                                                                            26,608                                                   25,847                                                         2.9 %                                                  99,399                                                  96,819                                                        2.7 %
Site level operating expenses as a                                                                         41.8 %                                                   39.2 %                                                       260 pts                                                  41.7 %                                                  40.5 %                                                      120 pts
percentage of nonfuel revenues
Site level gross margin in excess of                                                                  $   9,656                                                $   9,474                                                         1.9 %                                               $  36,840                                               $  34,609                                                        6.4 %
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 years ended December 31, 2017 and 2016.

                                                     
                                                                                                                                                                                                                                Three Months Ended December 31, 2017
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             Travel                             Convenience                           Corporate                            Consolidated
                                                                                                                             Centers                                                                    Stores                                                                    and Other
                                                                                                               -------------------------------                                             ------------------------------                                             -----------------------------                                             -----------------------------------
Revenues:
  Fuel                                                                                                            $ 965,366                                                                  $ 125,141                                                                  $ 19,251                                                                     $ 1,109,758
  Nonfuel                                                                                                           399,011                                                                     63,715                                                                     8,432                                                                         471,158
  Rent and royalties from franchisees                                                                                 2,917                                                      53                                                    879                                                        3,849  
                                                                                                               ---------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------------
Total revenues                                                                                                    1,367,294                                                 188,909                                                 28,562                                                    1,584,765  
                                                                                                               ---------------------------------                                           --------------------------------                                           -------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                 
Site level gross margin in excess of                                                                              $ 115,230                                               $   9,729                                               $  2,870                                                  $   127,829  
site level operating expenses
                                                                                                               ==== ======= ====================                                           === ======= ====================                                           === ====== ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                 
Corporate operating expenses:
  Selling, general and administrative                                                                                                                                                                                                                                   $ 39,352                                                                     $    39,352
  Real estate rent                                                                                                                                                                                                                                                        70,385                                                                          70,385
  Depreciation and amortization                                                                                                                                                                                                                                           37,253                                                       37,253  
                                                                                                                                                                                                                                                                      -------------------------------                                           -------------------------------------
Loss from operations                                                                                                                                                                                                                                                                                                                                     (19,161 )
                                                                                                                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                              11                                                                              11
  Acquisition costs
  Interest expense, net                                                                                                                                                                                                                                                    7,254                                                                           7,254
  Loss from equity investees                                                                                                                                                                                                                                                (643 )                                                                          (643 )
                                                                                                                                                                                                                                                                      -------------------------------                                           -------------------------------------
Loss before income taxes                                                                                                                                                                                                                                                                                                                                 (27,069 )
  Benefit for income taxes                                                                                                                                                                                                                                                 6,476                                                        6,476  
                                                                                                                                                                                                                                                                      -------------------------------                                           -------------------------------------
Net loss                                                                                                                                                                                                                                                                                                                                                 (20,593 )
  Less: net income for noncontrolling interests                                                                                                                                                                                                                                                                                                               32  
                                                                                                                                                                                                                                                                                                                                                -------------------------------------
Net loss attributable to common shareholders                                                                                                                                                                                                                                                                                                         $   (20,625 )
                                                                                                                                                                                                                                                                                                                                                ====== ========= ====================
                                                                                                        
      Supplemental data:
                                                                                                                                                                                                                                                                                                                                              
Gross margin:
  Fuel                                                                                                    $  83,634                                                                     $ 13,816                                                                     $    325                                                                         $     97,775
  Nonfuel                                                                                                   235,746                                                                       22,448                                                                        5,738                                                                              263,932
  Rent and royalties from franchisees                                                                         2,917                                                        53                                                       879                                                             3,849
                                                                                                     -----------------------------------                                           ----------------------------------                                           ----------------------------------                                           ----------------------
Total gross margin                                                                                        $ 322,297                                                  $ 36,317                                                  $  6,942                                                      $    365,556
                                                                                                     ====== ======= ====================                                           ====== ====== ====================                                           ====== ====== ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                              
Site level operating expenses                                                                             $ 207,067                                                  $ 26,588                                                  $  4,072                                                      $    237,727
                                                                                                     ====== ======= ====================                                           ====== ====== ====================                                           ====== ====== ====================                                           ========== ==========
                                                   
                                                                                                                                                                           TRAVELCENTERS OF AMERICA LLC
                                                                                                                                                                     BUSINESS SEGMENT INFORMATION (UNAUDITED)
                                                                                                                                                                                  (in thousands)
                                                                                                              
                                                                                                                                                                                                                             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                                                                                                         388,670                                                                     65,859                                                                     8,050                                                                       462,579
  Rent and royalties from franchisees                                                                               3,072                                                      57                                                  1,088                                                      4,217  
                                                                                                             ---------------------------------                                           --------------------------------                                           -------------------------------                                           -----------------------------------
Total revenues                                                                                                  1,205,641                                                 175,464                                                 27,543                                                  1,408,648  
                                                                                                             ---------------------------------                                           --------------------------------                                           -------------------------------                                           -----------------------------------
                                                                                                                                                                                                                                                                                                                                               
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)
                                                                                                                
                                                                                                                                                                                                                                      Year Ended December 31, 2017
                                                                                                               ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                              Travel                              Convenience                           Corporate                             Consolidated
                                                                                                                              Centers                                                                     Stores                                                                    and Other
                                                                                                               ---------------------------------                                             ------------------------------                                             ------------------------------                                             -----------------------------------
Revenues:
  Fuel                                                                                                            $ 3,533,121                                                                  $ 480,917                                                                  $  76,874                                                                     $ 4,090,912
  Nonfuel                                                                                                           1,636,009                                                                    269,854                                                                     38,318                                                                       1,944,181
  Rent and royalties from franchisees                                                                                  12,304                                                     215                                                   3,981                                                       16,500  
                                                                                                               -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
Total revenues                                                                                                      5,181,434                                                 750,986                                                 119,173                                                    6,051,593  
                                                                                                               -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                    
Site level gross margin in excess of                                                                              $   463,833                                               $  40,554                                               $   9,895                                                  $   514,282  
site level operating expenses
                                                                                                               ==== ========= ====================                                           === ======= ====================                                           === ======= ====================                                           ====== ========= ====================
                                                                                                                                                                                                                                                                                                                                                    
Corporate operating expenses:
  Selling, general and administrative                                                                                                                                                                                                                                     $ 154,663                                                                     $   154,663
  Real estate rent                                                                                                                                                                                                                                                          277,127                                                                         277,127
  Depreciation and amortization                                                                                                                                                                                                                                             128,416                                                      128,416  
                                                                                                                                                                                                                                                                        --------------------------------                                           -------------------------------------
Loss from operations                                                                                                                                                                                                                                                                                                                                        (45,924 )
                                                                                                                                                                                                                                                                                                                                                    
  Acquisition costs                                                                                                                                                                                                                                                             247                                                                             247
  Interest expense, net                                                                                                                                                                                                                                                      29,962                                                                          29,962
  Income from equity investees                                                                                                                                                                                                                                                1,088                                                        1,088  
                                                                                                                                                                                                                                                                        --------------------------------                                           -------------------------------------
Loss before income taxes                                                                                                                                                                                                                                                                                                                                    (75,045 )
  Benefit for income taxes                                                                                                                                                                                                                                                   84,439                                                       84,439  
                                                                                                                                                                                                                                                                        --------------------------------                                           -------------------------------------
Net income                                                                                                                                                                                                                                                                                                                                                    9,394
  Less: net income for noncontrolling interests                                                                                                                                                                                                                                                                                                                 132  
                                                                                                                                                                                                                                                                                                                                                   -------------------------------------
Net income attributable to common shareholders                                                                                                                                                                                                                                                                                                          $     9,262  
                                                                                                                                                                                                                                                                                                                                                   ====== ========= ====================
                                                                                                           
      Supplemental data:
                                                                                                                                                                                                                                                                                                                                                 
Gross margin:
  Fuel                                                                                                    $   336,253                                                                     $  57,227                                                                     $    699                                                                         $    394,179
  Nonfuel                                                                                                     964,438                                                                        94,516                                                                       25,398                                                                            1,084,352
  Rent and royalties from franchisees                                                                          12,304                                                        215                                                     3,981                                                            16,500
                                                                                                     -------------------------------------                                           -----------------------------------                                           ----------------------------------                                           ----------------------
Total gross margin                                                                                        $ 1,312,995                                                  $ 151,958                                                  $ 30,078                                                      $  1,495,031
                                                                                                     ====== ========= ====================                                           ====== ======= ====================                                           ====== ====== ====================                                           ========== ==========
                                                                                                                                                                                                                                                                                                                                                 
Site level operating expenses                                                                             $   849,162                                                  $ 111,404                                                  $ 20,183                                                      $    980,749
                                                                                                     ====== ========= ====================                                           ====== ======= ====================                                           ====== ====== ====================                                           ========== ==========
                                                     
                                                                                                                                                                              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                                                                                                           1,615,405                                                                    263,577                                                                     24,641                                                                       1,903,623
  Rent and royalties from franchisees                                                                                  13,628                                                     306                                                   3,418                                                       17,352  
                                                                                                               -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
Total revenues                                                                                                      4,665,894                                                 684,630                                                 100,600                                                    5,451,124  
                                                                                                               -----------------------------------                                           --------------------------------                                           --------------------------------                                           -------------------------------------
                                                                                                                                                                                                                                                                                                                                                    
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
                                                                                ====== ========= ====================                                           ====== ======= ====================                                           ====== ====== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                       

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180228005279r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180228005279/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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