Travel Centers of America is failing and will declare bankruptcy within five years.
Discussion in 'Truck Stops' started by Deadwood, Dec 17, 2020.
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Sirscrapntruckalot Thanks this.
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Well if they open some restaurants and fill in the empty spaces all over their locations, duh.
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The month old story is simply a regurgitation of a press release TravelCenter put out for their second quarter earnings. It says TA’s “rate of growth” from April - June of 2021 was 20-25% higher than April - June of 2020.
Covid lockdowns started in March 2020 and were in full force by April. They were literally laying off thousands of people in their restaurants in April-June 2020. OF COURSE their numbers would be better in 2021.
Article dated April 17, 2020
Truck stop giant to lay off thousands amid COVID-19 crisisLast edited: Sep 8, 2021
jason6541 Thanks this. -
TA is hitting the Public Relations channels pushing the idea that they are just now, finally starting to spend the $200 million they borrowed last year to fix existing locations.
TA-Petro Gives Truckers Sneak Peek at $200M in Upgrades to Parking, Showers, and More
They have 274 existing locations and are supposedly "refreshing" 100 of them.
TA's corporate bonds are priced from 8.25% to 8% and the long term average corporate bond rate is 6.6%. Their cost to borrow money is high.
TA | TravelCenters of America Inc. SEC Filings | MarketWatch
I still think they are using this money as a piggy bank to cover corporate expenses and publicly unknown financial problems.
If your company is doing well financially, why wouldn't you do these "refreshes" on a one-by-one basis out of existing cash flow instead of dramatically taking out $200 million dollars in debt?!? Because their cash flow already sucks and that giant wad of money is being piggy banked. At 8% that is $16 million dollars of additional yearly interest expense for a company that is already struggling. It doesn't make sense.Last edited: Sep 20, 2021
Gearjammin' Penguin Thanks this. -
drvrtech77, Gearjammin' Penguin and Deadwood Thank this.
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ProfessionalNoticer, exhausted379, Gearjammin' Penguin and 1 other person Thank this.
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Not surprised. I stopped at the TA in west Memphis yesterday to use the bathroom real quick and I thought maybe I'd get a bacon egg sando... Nope! Lol, idk what I expected but yeah.. it was in shambles. Understaffed- rude employees too. Idk why they just didn't like my presence it seemed. I left quickly so as not to be stabbed
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BunBaoPho88 Thanks this.
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ProfessionalNoticer, w9l, BunBaoPho88 and 2 others Thank this.
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