Petro Stopping Centers L.P. Announces Third Quarter Results and Conference Call
EL PASO--Nov. 12, 2002--Petro Stopping Centers L.P., one of the leading operators of full-service travel plazas in the U.S., today announced its operating results for the third quarter ended September 30, 2002.Revenue for the third quarter 2002 of $242.9 million was $5.1 million higher than the same period last year. The increase in revenue was primarily due to an increase in fuel volume and the addition of a new site, partially offset by a decrease in the average selling price per fuel gallon and a $5.0 million payment received in 2001 for the early termination of four franchise agreements. Net income for the quarter was $3.6 million as compared to $4.5 million in 2001. The decrease in net income was due to lower operating income resulting from the franchise termination fee received in 2001, partially offset by improved gross margin and reduced operating expenses. EBITDA for the period decreased 15.9% to $12.5 million, while same-store EBITDA decreased 17% to $11.9 million. Both decreases were due to the termination fee received in 2001, partially offset by an increase in gross margin and reduced expenses. No provision for income taxes is reflected in the Company's financial statements because of its organization as a partnership.
Revenue for the nine months ended Sept. 30, 2002, was $682.9 million, compared to $714.5 million in 2001. Net income for the period was $5.4 million compared to $484,000 in 2001. EBITDA for the nine months increased 4.3% to $33.2 million, with same-store EBITDA up 1.5% or $464,000.
Jack Cardwell, Petro's Chairman and Chief Executive Officer, said, "We are pleased that current operations continue to show solid growth. Factoring out the effect of the franchise termination fee received last year, EBITDA growth was 24% in the quarter and over 22% year to date."
Jim Cardwell, Chief Operating Officer, and Edward Escudero, Vice President of Finance and Treasurer, will host an investor conference call on Wednesday, Nov. 13, 2002, at 11:00 a.m. Eastern Time to discuss third quarter results. The phone number to access the conference call is 1-800-553-0273.
EBITDA, or operating income plus depreciation and amortization, is not a measure of financial performance under generally accepted accounting principles, but is presented because such data is used by certain investors to determine a company's ability to meet historical debt service requirements. Such data should not be considered as an alternative to net income as an indicator of our operating performance or as an alternative to cash flows as a measure of liquidity.
Petro Stopping Centers L.P. is one of the leading travel plaza operators in the U.S. As of Nov. 12, 2002, the Company has a nationwide network of 36 company-operated and 23 franchised locations. The Company provides high-quality multi-service facilities, with most sites featuring separate diesel and gasoline fueling facilities, Iron Skillet(R) restaurants, travel & convenience stores and Petro:Lube(R) preventative maintenance and repair centers.
All statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws. These forward-looking statements are not guarantees of future performance and inherently involve certain risks, uncertainties and assumptions that are difficult to predict. While these statements are based on the Company's best estimates, actual outcomes and results may differ materially from what is expressed in, or implied by, such forward-looking statements. Petro Stopping Centers L.P. assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
PETRO STOPPING CENTERS L.P.
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2002 2001 2002
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Net revenues:
Fuel (including motor
fuel taxes) $171,720 $180,629 $536,718 $503,595
Non-fuel 66,036(a) 62,226 177,757(a) 179,314
--------- --------- --------- ---------
Total net revenues 237,756 242,855 714,475 682,909
Costs and expenses:
Cost of sales
Fuel (including motor
fuel taxes) 160,462 170,593 505,172 474,733
Non-fuel 25,596 24,756 72,076 72,162
Operating expenses 32,033 30,709 90,957 89,919
General and
administrative 4,925 4,345 14,503 12,901
Depreciation and
amortization 4,439 3,904 13,219 12,365
Gain on disposition of
fixed assets (59) - (59) -
--------- --------- --------- ---------
Total costs and
expenses 227,396 234,307 695,868 662,080
--------- --------- --------- ---------
Operating income 10,360 8,548 18,607 20,829
Equity in income of
affiliate 111 175 68 302
Interest income 33 16 159 46
Interest expense, net (5,991) (5,145) (18,350) (15,788)
--------- --------- --------- ---------
Net income $4,513 $3,594 $484 $5,389
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(a) Includes $5.0 million franchise termination fee, net of
related expenses