Revenues rose from $966.6 million in [image-nocss] first-quarter 2009 to $1.38 billion in first-quarter 2010.
Although other factors have an effect, fuel gross margins tend to be lower during periods of rising fuel prices and higher during periods of falling fuel prices. Fuel commodity prices gradually rose in 2009 and through first-quarter 2010. As a result, TA's fuel gross margin was $10.2 million lower in first-quarter 2010 than first-quarter 2009, despite an increase in same site fuel sales volume in first-quarter 2010. TA's nonfuel gross margin as a percentage of nonfuel revenues on a same site basis for first-quarter 2010 declined from the prior year quarter due to a shift in revenues to lower margin products and services.
Additionally, operating expenses increased as a percentage of nonfuel sales on a same site basis, primarily due to increases in self-insurance claim costs that are unrelated to sales levels, to increases in certain credit card transaction fees that result from increased fuel sales levels and fuel prices and to TA's increased maintenance costs.
The trucking industry is the primary customer for TA's goods and services. Freight and trucking demand in the United States generally reflects the level of commercial activity in the U.S. economy. During first-quarter 2010, TA experienced an increase in same-site fuel sales volume of 9.1%, compared with first-quarter 2009. This increase resulted primarily from increased trucking activity attributable to increased U.S. economic activity during first-quarter 2010, compared to the same period of the prior year, and continued the positive trend that began in the fourth quarter of 2009 after the negative trend that had persisted since 2007 had moderated throughout the first three quarters of 2009; however, TA continues to operate at levels well below those of 2007.
Nonfuel sales for the 2010 first quarter increased from the comparable period of 2009 largely due to increased customer traffic in TA's travel centers as a result of increased trucking activity. The percentage increase in nonfuel revenues was lower than the percentage increase in fuel volumes; TA said that it believes this may be because its customers continued their conservative discretionary spending which began during the recent U.S. economic recession.
At March 31, 2010, Westlake, Ohio-based TA's business included 229 sites in 41 states, 166 of which were operated under the TravelCenters of America or TA brand names and 63 that were operated under the Petro brand name.
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