TA posts $1.2 million profit; voices concern over Pilot, Flying J merger

Speaking of company's focus on the customer, TA President and CEO Tom O’Brien pointed to the recently combined loyalty programs for the TA and Petro brands, allowing drivers to use a single card to earn points at all 229 locations. He also cited the CSA 2010 training that TA personnel have undergone; the addition of salad bars in every restaurant, along with low calorie options; and new shower standards.

The Trucker Staff

8/10/2010

WESTLAKE, Ohio — TravelCenters of America LLC, which operates the TA and Petro brands, reported a $16 million improvement for the second quarter, turning a $1.2 million profit after posting a $15 million loss the year before. TA lost more than $40 million in the first quarter.

The company credited higher fuel margins as “a key factor” in the quarter. Additionally, President and CEO Tom O'Brien said an improving economy meant more trucks and truckers on the road, leading to gains in non-fuel sales as well.

Revenue for the period was $1.5 billion, compared to $1.13 billion in the 2009 quarter. Total fuel sales were $1.2 billion and $841 million for the respective periods.

“We continue to focus on our customer,” O’Brien said during a conference call. “There really is no one else in our industry that is doing the things TA is doing to make the customer experience first rate.”

Among such efforts, O’Brien pointed to the recently combined loyalty programs for the two brands, allowing drivers to use a single card to earn points at all 229 locations.

He also cited the CSA 2010 training that TA personnel have undergone; the addition of salad bars in every restaurant, along with low calorie options; and new shower standards.

Referring to the recently completed merger of Pilot and Flying J, already the two largest truck stop chains, O’Brien called the impact on the competitive landscape “a major unknown.”

“I’m a little bit surprised at the Federal Trade Commission’s approval [of the merger], particularly given the Obama administration’s get-tough policy on anti-trust enforcement,” O’Brien said. “We are closely monitoring Pilot and Flying J’s actions. I want to see how they use their combined market power. … In the meantime, we’re redoubling our efforts to compete in this changed marketplace. And we intend to continue to be as aggressive as possible on fuel pricing.”

Kevin Jones of The Trucker staff can be reached for comment at kevinj@thetrucker.com.

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