TA Petro Overview of SVC Leases and Financial Upside
Runway For Recaptured Financial Upside
Comparable Period Adjusted EBITDAR (1)
($ in millions)
$362
$352
$361
Comparable Period Adjusted EBITDA (1)(2)
($ in millions)
$122
2018
2019
Comparable Period Adjusted EBITDAR
Rent Coverage (1)
18
1.3x
2018
1.4x
2019
LTM Ended
9/30/2020
1.4x
LTM Ended
9/30/2020
2018
$94
2019
$108
LTM Ended
9/30/2020
Comparable Period Free Cash Flow (3)
($ in millions)
Free Cash Flow (less SVC Deferred Rent Payments) SVC Deferred Rent Payments
$18
$13
$105
$39
$35
2018
2019
LTM Ended
9/30/2020
(1)
(2)
(3)
EBITDAR/EBITDA are adjusted downwards by $23.3 million, $70.2 million, and $91 million in 2018, 2019, and last twelve months ended 9/30/2020, respectively, in relation to the actual recognition of the federal biodiesel blenders' tax credits.
Comparable Period Adjusted EBITDAR includes $240.3 million, $257.2 million, and $253 million of rent expense, rent reduction from SVC lease restructuring transaction, and operating lease impairments adjustments for 2018, 2019, and last twelve
months ended 09/30/2020, respectively.
2018 EBITDA includes add-back of $43.1 million to reflect the current annual fixed rental rate which was renegotiated by TA and SVC in 2019 allowing for side by side period comparison.
Comparable Period Free Cash Flow defined as the sum of net cash provided by operating activities of continuing operations, proceeds from sale leaseback transactions with SVC, and biodiesel blenders' tax credits generated less capital expenditures
of continuing operations. 2018 operating cash flow from continuing operations includes add-back of $43.1 million to reflect the current annual fixed rental rate which was renegotiated by TA and SVC in 2019 allowing for side by side period comparison
2019 and last twelve months ended 9/30/2020 include add backs of $13.1 million and $17.6 million, respectively, to reflect paid deferred rental obligations to SVC which was renegotiated by TA and SVC in 2019 allowing for side by side comparison.
2018 operating cash flow from continuing operations adjusted downwards by $23.3 million to reflect the cash collection of 2017 biodiesel blenders' tax credits. LTM ended 9/30/2020 operating cash flow from continuing operations adjusted downwards
by $69.9 million to reflect the cash collection of 2018 and 2019 biodiesel blenders' tax credits. Biodiesel blenders' tax credits have been applied on a pro forma basis to the year when they were generated, despite actual cash collections taking place in
subsequent years due to legislation status at the time, which may not be consistent with what was recognized and reported.
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