Petro Stopping Centers L.P. Announces Q2 1999 Operating Results
11 August 1999
Petro Stopping Centers L.P. Announces Second Quarter 1999 Operating Results
EL PASO, Texas--Aug. 10, 1999--Petro Stopping Centers L.P., one of the nation's leading operators of full-service travel plazas and truck stops with 51 locations in 29 states, today announced its operating results for the second quarter ended June 30, 1999.Revenues for the quarter ended June 30th were $168.4 million as compared to $165.2 million for the same period last year. EBITDA for the quarter ended June 30th was $11.2 million as compared to $10.8 million for the same period last year. Net income for the quarter ended June 30th was $1.9 million, as compared to $2.0 million for the same period last year. Net income was impacted by approximately $623,000 of expenses related to the Company's recapitalization transaction, which was consummated on July 23, 1999. No provision for income taxes is reflected in the Company's financial statements because of its organization as a partnership.
"We are pleased with our second quarter earnings, even though our operating results continue to be effected by fluctuating trends in fuel margins," said Chairman and Chief Executive Officer, Jack Cardwell. "We continue to see an upward trend in our non-fuel and restaurant results, despite pressure from lower fuel margins."
As previously reported, Petro consummated the Company's recapitalization transaction on July 23, 1999. Volvo Petro Holdings L.L.C., an affiliate of Volvo Trucks of North America Inc., has invested $30,000,000 to acquire an equity interest in the Company making them the second largest equity holder.
In addition, Mobil Long Haul Inc., an affiliate of Mobil Oil Corporation, invested an additional $5,000,000 in the Company. The investments by Volvo and Mobil, which effectively replaced certain equity holders, along with the amending of the senior collateralized credit facility and the securing of additional financing, will allow Petro to pursue its growth objectives to expand services and locations.
As a result of the recapitalization, the Company believes that the strategic alliance with Mobil and Volvo will also strengthen its competitive position by providing high-quality brand recognition, increased traffic and opportunities to promote integrated products and services to the trucking industry.
Petro Stopping Centers L.P. is an El Paso, Texas-based national leader of full-service travel plazas and truck stops. The Company's network currently offers 29 company-operated and 22 franchised locations. These locations are one-stop, multi-service facilities featuring separate diesel and gasoline fueling facilities, Iron Skillet restaurants, travel and convenience stores and Petro:Lube preventative maintenance and repair centers.
Petro Stopping Centers L.P.
Unaudited Consolidated Statement of Operations
(in thousands)
Three Months Ended Six Months Ended
June 30, June 30, June 30, June 30,
1998 1999 1998 1999
---- ---- ---- ----
Net Revenues
(including motor
fuel taxes)
Fuel $117,162 $118,017 $236,194 $224,898
Non-fuel 34,758 36,573 65,691 70,129
Restaurant 13,237 13,850 26,204 26,986
-------- -------- --------- ---------
Total net
revenues 165,157 168,440 328,089 322,013
-------- -------- --------- ---------
Costs & Expenses
Cost of Sales
(including motor
fuel taxes) 126,657 128,774 253,428 245,115
Operating
Expenses 22,901 24,382 45,511 47,787
General &
Administrative 4,787 4,953 9,385 9,760
Depreciation &
Amortization 3,874 3,403 7,580 6,670
-------- -------- --------- ---------
Total costs &
expenses 158,219 161,512 315,904 309,332
-------- -------- ---------- ---------
Operating Income 6,938 6,928 12,185 12,681
Other income
(expense):
Gain (loss) on
sale of assets,
net -- 865 (28) 849
Recapitalization
costs -- (623) -- (623)
Equity in
earnings (loss)
of affiliate -- (230) -- (230)
Interest Expense,
net (4,972) (5,065) (9,989) (10,027)
-------- -------- --------- ---------
Net Income $1,966 $1,875 $2,168 $2,650
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