TravelCenters of America LLC Q3 2009 Earnings Call Transcript

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2009-11-09 12:20:19.0

Tags: Morgan Keegan & Co., Call Transcript, Earnings, TravelCenters Of America LLC, Sales Strategy, Sales Force Management, Sales, Seeking Alpha, TravelCenters of America LLC

Question-and-Answer Session

Operator

(Operator Instructions) Your first question comes from Ben Brownlow - Morgan Keegan.

Ben Brownlow - Morgan Keegan

I guess first of all I’d just like to menu on managing expenses so well especially in this environment, it’s encouraging to see that being sustainable. I guess starting off, you kind of touched a little bit about sales trends for the quarter and it sounded as though those costs continuing to improve in Q3?

Andy Rebholz

I’m sorry the SG&A cost?

Ben Brownlow - Morgan Keegan

The sales trends, I’m sorry.

Tom O’Brien

The sales trends.

Ben Brownlow - Morgan Keegan

Did those improve through Q3 and how did those kind of carry over into Q4?

Tom O’Brien

Yes, Q4 so far we are, the changes have continued to be mild, but we have not on the diesel side seen anything with the plus sign in front of it that at this time is a reliable number.

Ben Brownlow - Morgan Keegan

Okay, are you still accessing some of those lower margin fuel businesses or is that completely lapped at this point?

Tom O’Brien

It is not as big a focus as it was back when we really started to do that, because obviously you only has so much of that, you know what I mean?

Ben Brownlow - Morgan Keegan

Yes, okay. It’s probably too early to even see any changes at this point, but with the Flying J, have you see any change with kind of competitive stand there?

Tom O’Brien

Not much, but in terms of our competitors approach to the market place and things such as pricing and promotions in marketing and sales it is interesting and I don’t want to be accused of putting these numbers out when convenient for us, so you need to take it with a grain of salt.

Our fuel volume changes have been much more mile than for example for the changes in the total miles index put out by the ATA, and it’s gotten to the point where that delta is very large. So as Andy said, I think that we maybe, I take that to be an indication that it’s possible that we are picking up market share at this point; may be a reflection of things that are occupying others in the competitive landscape.

Ben Brownlow - Morgan Keegan

Okay, so you are still gaining market share, which you have been I guess for a couple of quarters how you feel like?

 

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