TA Will Recognize Approximately $72 Million in Credits in the Fourth Quarter 2019
Tax Credit Will Also Be Extended through 2022
WESTLAKE, Ohio--(BUSINESS WIRE)--TravelCenters of America Inc. (Nasdaq: TA) today announced that the U.S. Government biodiesel tax credit was retroactively reinstated for 2018 and 2019 in congressional legislation passed on December 20, 2019. TA expects to recognize approximately $72 million related to the biodiesel tax credit reinstatement for 2018 and 2019 in its fourth quarter 2019 financial statements as a reduction to TA's fuel cost of goods sold. In addition to reinstating the federal biodiesel tax credit for 2018 and 2019, this legislation also extended the tax credit through year end 2022.
About TravelCenters of America Inc.:
TravelCenters of America Inc. (Nasdaq: TA) is the nation's largest publicly traded full-service travel center network. Founded in 1972 and headquartered in Westlake, Ohio, its more than 21,000 employees serve customers in over 260 locations in 44 states and Canada, principally under the TA®, Petro Stopping Centers® and TA Express® brands. Offerings include diesel and gasoline fuel, truck maintenance and repair, full-service and quick-service restaurants, car and truck parking and other services and amenities dedicated to providing great experiences for professional drivers and the general motoring public. TravelCenters of America operates nearly 650 full-service and quick-service restaurants and 10 proprietary brands, including Quaker Steak and Lube®, Iron Skillet® and Country Pride®. For more information, visit www.ta-petro.com.
Warning Concerning Forward-Looking Statements
This press release contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Also, whenever TA uses words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, "will", “may” and negatives or derivatives of these or similar expressions, TA is making forward-looking statements. These forward-looking statements are based upon TA’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained in or implied by TA’s forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond TA’s control. For example:
- The extension of the U.S. Government biodiesel tax credit through 2022 may imply that TA will recognize similar or greater annual tax credit amounts as it estimates it will recognize for 2018 and 2019. However, the amount of the credit is based on the number of biodiesel gallons sold. TA’s ability to recognize this credit beyond 2019 is subject to risks, including market and customer demand for TA’s biodiesel products and other factors beyond TA’s control. As a result, TA may not recognize similar annual U.S. Government biodiesel tax credit amounts through 2022 as it estimates it will recognize for 2018 and 2019.
The information contained in TA’s filings with the Securities and Exchange Commission, or SEC, including under “Risk Factors” in TA’s periodic reports, or incorporated therein, identifies other important factors that could cause TA’s actual results to differ materially from those stated in or implied by TA’s forward-looking statements. TA’s filings with the SEC are available on the SEC’s website at www.sec.gov.
You should not place undue reliance upon forward-looking statements. Except as required by law, TA does not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
Kristin Brown, Director, Investor Relations