Travel Centers of America triples Q4 net income; will open 49 stores
Westlake, Ohio – Rising fuel gross margins and a non-recurring litigation settlement helped Travel Centers of America Inc. (TA) roughly triple its net income to $34.34 million in the fourth quarter of fiscal 2014, from $11.97 million in the fourth quarter of the previous fiscal year. Revenues dipped 9% to $1.72 billion, from $1.9 billion.
As of Dec. 31, 2014, TA had entered agreements to acquire two additional travel centers, 26 convenience stores and a quick-service restaurant, for an aggregate of $41.4 million. During 2015 to date, TA has entered agreements to acquire a parcel of vacant land, a travel center that it previously leased and 19 gasoline stations/convenience stores for an aggregate of $36.3 million. That brings a total of 49 new stores TA is opening in fiscal 2015.
Revenues declined 2% to $7.78 billion, from $7.94 billion. Net income almost doubled to $60.97 million from $31.62 million.
“While the significant move in fuel product pricing during the second half of 2014 contributed to much of the year over year improvement with respect to fuel gross margins, we also remain committed to provide customers with competitively priced fuel and the nonfuel products and services necessary to support and enhance their travel experiences,” said Thomas M. O’Brien, CEO. “The results of these efforts produced solid nonfuel growth.”
Tiger Direct slices store count
Port Washington, N.Y. – Consumer electronics retailer Tiger Direct, a subsidiary of Systemax, has decided to focus on its online territory. Tiger Direct is shuttering 31 of its 34 U.S.-based and international stores.
Gordon Brothers Group subsidiary DJM Real Estate is handling the disposal of 27 Tiger Direct stores in the U.S. and Canada. The stores, which range in size from 14,000 to 33,400-sq.-ft, can be subleased or have their leases purchased outright.
Pantry merger wait period expires
Cary, N.C. – The Pantry Inc. has announced the expiration of the waiting period under the U.S. Hart-Scott-Rondino Act for to the proposed merger between The Pantry and a U.S. subsidiary of Alimentation Couche-Tard Inc. Pantry stockholders approved the merger agreement at a special meeting on March 10.
With the expiration of the waiting period being the last major step before executing the merger, the closing is expected to occur on March 16, 2015 or as soon as possible thereafter. On Dec. 18, 2014, The Pantry entered into merger agreement with Couche-Tard U.S. Inc. and CT-US Acquisition Corp., with The Pantry surviving as a wholly owned subsidiary of Couche-Tard.