TravelCenters of America swings to 3Q loss, falls to 52-week low
Shares of truck stop operator TravelCenters of America LLC (AMEX: TA) have shifted into reverse and hit a new 52-week low on news before the start of trading of a third-quarter loss.
The net loss for the three months ended Sept. 30 was $21.6 million, or $1.56 per share, while seven analysts polled by Thomson Financial were expecting a narrower net loss of $0.02 per share. A year ago the Westlake, Ohio-based company had a profit of $14 million, or $1.84 per share.
Revenues increased 37% to $1.78 billion from $1.3 billion a year earlier, but still missed Wall Street’s projections of $1.88 billion.
The third quarter was the first since the acquisition of El Paso, Texas-based travel plaza chain Petro Shopping Centers on May 30. The purchase required TravelCenters of America to eliminate duplicating positions within its corporate office, resulting in the termination of 32 employees. The company said that it will continue the process of consolidation into 2008 and expects to eliminate a total of 60 positions.
With 234 sites nationwide as of Sept. 30, 69 of which are operated under the “Petro” name, TravelCenters of America is the largest full-service company serving professional drivers in the United States.
At 11:59 a.m. ET, shares of TravelCenters of America (TA) had retreated $3.53, or 15%, to $20.22. The previous 52-week low was $22.16, set on Nov. 12. The 52-week high of $47.41 was reached on June 15.
