Although other factors have an effect, fuel gross margins per gallon tend to be lower during periods of rising fuel prices and higher during periods of falling fuel prices, the company said. While fuel commodity prices during the 2010 third quarter were at a higher level than in the 2009 third [image-nocss] quarter, there were more days of declining fuel commodity prices throughout the third quarter of 2010, as compared to the same quarter of the prior year. Additionally, fuel commodity prices were less volatile in the 2010 third quarter than in the 2009 third quarter. As a result, TA's fuel gross margin per gallon increased as compared to the prior year when fuel commodity prices were rising and, combined with an increase in fuel sales volumes, resulted in total fuel gross margin that was $14.2 million higher in third-quarter 2010 than third-quarter 2009.
Nonfuel sales for the 2010 third quarter increased from the comparable periods of 2009 largely due to an increased number of customers in TA's travel centers as a result of increased trucking activity. TA's operating expenses as a percentage of nonfuel revenues on a same-site basis for third-quarter 2010 decreased because certain of TA's expenses are fixed in nature or otherwise do not vary directly with sales so that increases in its revenues did not result in corresponding increases in its operating expenses.
During third-quarter 2010, TA experienced an increase in same-site fuel sales volume of 5.6%, compared with third-quarter 2009. These increases resulted from a combination of TA's marketing and customer service initiatives and increased trucking activity attributable to increased economic activity in the U.S. during third-quarter 2010, compared to the same period of the prior year. The third-quarter same-site fuel sales volume increase continued the positive trend that began in fourth-quarter 2009 after the negative trend that had persisted since 2007 had moderated during the first three quarters of 2009.
The trucking industry is the primary customer for TA's goods and services. U.S. freight and trucking demand generally reflects the level of commercial activity in the U.S. economy. The condition of the U.S. economy generally, and the financial condition and activity of the trucking industry in the U.S. specifically, impacted TA's financial results during third-quarter 2010, and TA expects these matters will continue to impact its financial results in future periods. While TA's fuel sales volumes and nonfuel revenues in third-quarter 2010 both increased on a same-site basis over the comparable periods of the prior year, the level of fuel sales volume continues to be well below that experienced before the recession from which the U.S. economy now may be recovering; however, the strength and sustainability of any such recovery is uncertain, including the risk that a possible "double dip" recession may occur.
At September 30, 2010, Westlake, Ohio-based TA's business included 229 sites, 166 of which were operated under the TravelCenters of America or TA brand names and 63 of which were operated under the Petro brand name. The sites offer diesel and gasoline fueling services, restaurants, truck repair facilities, stores and other services. TA's nationwide business includes travel centers located in 41 U.S. states and in Canada.
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