Petro Stopping Centers L.P. Announces Year-End Results
24 February 2000
Petro Stopping Centers L.P. Announces Year-End Results
EL PASO, Texas--Feb. 23, 2000--Petro Stopping Centers L.P., one of the nation's leading operators of full-service travel plazas and truck stops with 53 locations in 30 states, today announced its operating results for the year and fourth quarter ended Dec. 31, 1999.Revenues for the quarter ended Dec. 31, 1999, were $214.2 million as compared to $158.0 million for the same period last year. EBITDA for the quarter ended Dec. 31 was $9.2 million as compared to $10.1 million for the same period last year. Income before extraordinary item and cumulative effect of a change in accounting principle for the quarter ended Dec. 31 was $.2 million as compared to $.7 million for the same period last year.
Revenues for the year ended Dec. 31, 1999, were $719.9 million as compared to $653.4 million for the same period last year. EBITDA for the year was $39.5 million as compared to $41.7 million for the same period last year. Income before extraordinary item and cumulative effect of a change in accounting principle for the year was $4.1 million, as compared with $5.7 million for the same period last year. Income for the year was impacted by approximately $1.2 million of expenses related to the Company's recapitalization transaction consummated in July. 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 results for the year considering the continued rise in fuel costs and related fuel margin pressure," said Chairman and Chief Executive Officer Jack Cardwell. "We are especially pleased with the continued growth in our non-fuel areas and are looking forward to a great year in 2000."
As previously reported, the Company and certain of its affiliates consummated a recapitalization transaction on July 23, 1999. As part of the transaction, an affiliate of Volvo Trucks of North America Inc. made an equity investment and an affiliate of Mobil Oil Corporation made an additional investment.
The investments by Volvo and Mobil, which effectively replaced certain equity holders, along with the restructure 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.
The Company believes that the strategic alliance with Mobil and Volvo will 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 includes 30 company-operated and 23 franchised locations. These locations are one-stop, multi-service facilities featuring separate diesel and gasoline fueling facilities, Iron Skillet restaurants, travel & convenience stores, and Petro:Lube preventative maintenance and repair centers.
The 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 involve certain risks, uncertainties and assumptions that are difficult to predict. 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 update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.
PETRO STOPPING CENTERS L.P.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands)
Year Ended Year Ended Year Ended
Dec. 31, Dec. 31, Dec. 31,
1997 1998 1999
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Net revenues:
Fuel (including motor fuel taxes): 513,571 464,025 520,680
Non-fuel 172,158 189,391 199,245
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Total net revenues 685,729 653,416 719,925
Costs and expenses:
Cost of sales
Fuel (including motor fuel taxes) 476,033 422,945 481,483
Non-fuel 70,548 76,451 80,491
Operating expenses 85,560 93,012 100,156
General and administrative 17,004 19,329 19,154
Depreciation and amortization 14,502 15,953 13,951
(Gain) loss on disposition
of fixed assets 31 6 (836)
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Total costs and expenses 663,678 627,696 694,399
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Operating income 22,051 25,720 25,526
Recapitalization costs -- -- (1,163)
Equity in earnings (loss)
of affiliate -- -- (593)
Interest income 956 729 596
Interest expense (21,248) (20,771) (20,250)
-------- -------- --------
Income (loss) before extraordinary
item and cumulative effect of a
change in accounting principle 1,759 5,678 4,116
Extraordinary item - write off of
debt restructuring costs associated
with retired debt (12,745) -- (2,016)
Cumulative effect of a change
in accounting principle (1,579) (3,250) --
-------- -------- --------
Net income (loss) (12,565) 2,428 2,100
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