TravelCenters of America (TA) 2 Aug 222022 Q2 Earnings call transcript

Good morning, and welcome to TravelCenters of America Second Quarter 2022 Investor Call. This call is being recorded. At this time for opening remarks and introductions, I would like to introduce TA's Director of Investor Relations, Ms. Kristin Brown. Please go ahead.

you. Thank everyone. morning, Good

Today's the today's Pertchik, meaning remarks Officer, followed X, Barry analyst These of expectations laws. Securities and Litigation begin statements forward-looking Executive Peter TA's as beliefs Officer, XXXX. and are based of statements XXXX of President, Q&A. our Reform federal for August and Jon by Richards call within call will Private contains the from with present today, Chief securities Crage, conference forward-looking We Chief Act on Financial TA's

results Forward-looking occur to statements implied those revise occur. no guaranteed made by and their in may included revision statements. implications or Actual than to forward-looking the are TA differ forward-looking and not to other materially or obligation any required today not from they release these statements publicly may as undertakes law.

cause information charge of by Securities with forward-looking the section our TAs statements that statements. not place Exchange filings Investor are not undue forward-looking referring are website. and free to factors Commission that Additional upon occur our reliance website cautioned the Relations or contained the SEC SEC's any available concerning in could to is Investors to at or of

XXXX second otherwise. qualitative the financial call, XXXX, earnings press stated these today's EBITDA. assumed release regarding compared that measures, be our During quarter discussing as section on are performance be and financial any and the quarter our the in news the in amounts measures second available as measures be adjusted stated website. The be we most EBITDA, this comments of regarding to of The net income, will non-GAAP to to call, and/or including of unless non-GAAP adjusted reconciliations comparable operating found GAAP well can as implied on should

over to I'll the like to the recording would call that that, turn TA. written remind is Jon, without consent prior retransmission prohibited of And conference with the today's you call you. I of and Finally,

Thanks, ability TA. your everyone thank the have years. TravelCenters My and their these recent for Kristin. to optimize America the we I in efforts qualities you interest and to TA's at what continuing outperformance. quarter has were the of sustainable best outstanding evidence Good consistency, results benefits of and reported a second teammates demonstrated provides increasingly dynamic forward. in resilience, opportunity are moving yesterday. morning Strength, And in execution and believe performance past results the display on been that challenging these and that fully repeatable XX-months during XX,XXX

to adjusted XX-month produced prior growth For impressive difficult leverage healthy XXX% the EBITDA Remember the XXXX QX to that in translated In million improvement adjusted increase even QX comp. adjusted outcome makes top-line prior significant more were quarter's operating in significant, versus and income nearly short, XX% generating our TA $XXX.X million a even results to XXXX which $XX.X EBITDA in a trailing over this XX% compared period. the operating $XXX against second greater the increases year year as improvement into quarter, cash a flow. quarter to following: a XXXX, in of net and income million; growth

trailing facing EBITDA. results XX-month now, million $XXX.X mark the And $XXX the XXXX, EBITDA. adjusted consistency, value resilience, again, just million. financial despite TA was of under adjusted $XXX with we million multi-year once improvement. TA's TA's an extraordinary. of million effects adjusted So broke generated attention draw growth, both of combined consistent million, to that EBITDA I These want of have adjusted generated newly improvements In team EBITDA $XXX and XXXX, to demonstrated XXXX multi-year our creation. demonstrate adverse and we COVID. are In $XXX significant

Starting team team technician to has team us obviously execution. underscore While in with many not with improve strength with truck business, strong any fuel impact. and would can enabling technology this margins, our Most diesel experience results. TA's commercial leverage strong merely the leveraging led and the initiatives was found our to maximize growth management be tech service part large division, by performance improving a was the refined period relating I compensation businesses. solidly combined of within yet margin, performance from to remain resulted efficiently but outpacing that intensively excellent circumstances be which expansion hospitality. in harvested. to professional Shifting with across to favorable inflationary fuel efficiency, margin volatile quarter and supply driver to this value from favorably much of the maintenance fuel substantial upside retention, process, market coming to forces, driven And this front mobile margin,

We largely offset successful increasing labor and cost pressures. in operating have been to prices thoughtfully

begun carefully Petros Here And are have too find and have We again bottom-line track to of underway, fuel operations by on our diesel to various with Moreover, well or hold. improving dispensers food non-fuel improve remain through Island efficiencies. including as the strengthened year. ways exhaust by food end to offerings merchandising on DEF. technology were for loyalty top-line, many the fluid program, demand revenues TA's yet this at to all as nationwide to for working initiatives have diesel and TA impacts that just we gotten take example customer leveraging c-store on not efficiency continue DEF

Importantly, of I touch also wanted TA's on business to resiliency model. the

diesel on and our the business same favorable creating volatility our well generating at also economy, from conditions consumer challenges These for the wage our side motorists While are uncertainties has uncertainty as been food. and successful market margin has compression of fuel impacting which at as spending volatility discretionary team inflation and and c-stores for with national created upside. the

the the point Ukraine, to end through persistent resilience, least offer is Herein supply led inflation, in And we persistent the lies that expect and to remain can XXXX. XXXX, continuing model. constraints, GDP of my of the remainder by My want business of resiliency TA's contraction. on this outlook do I volatility reasonably at for of belief war

While margin continued saw diesel in solid softness conditions benefit we to to fuel also gasoline excellent volatility performance. TA's QX. which margins we fuel execution macroeconomic-driven remain modestly With hospitality, expect suppress expect we team, our by from mitigate in should and volumes areas, other continuing robust that continue expect favorable to this and should overall we to in provide turn

We are not CPG increasing our guidance. long-term fuel

persist signaling the margins However, a clearly we year. through are fuel likelihood than of typical higher strong that remainder this should

not content rest In our existing momentum. performance addition, in are we and to

to artificial diesel initiatives. support intelligence initiatives We expanding development TA's transformational of and fuel, street including the continue small to among other pursue program in fleet new pricing

to new and margin also and and sales. volumes will contribute retail begin We end of by higher hospitality may the activities contribute expect these non-fuel ‘XX more

Moving to growth initiatives.

of return franchise the have during TravelCenter beyond. two substantial the XXXX, minimum locations EBITDA a than report Furthermore, I on quarter franchise due more add Our robust largely during into outperforming first acquisitions am EBITDA we sites totaling five acquisition us to synergies. investment, and expectations to probable and XXXX, are provide mid-teens of network's agreements. beginning under XX to two opportunities since proforma geographic positions return consideration sites closed to Acquisitions happy second serious coverage. year TA highly of of pipeline our these rate incremental the one along Five active that independent operations Also, XXXX, significantly and XX next strengthen we April corridors the in run began entered XXXX. during will

meaningful XXXX. balance expect contribute XX of now will go-forward We to XX and plus at incremental end begin These to of open target a and the opening TravelCenters into quarter and these starting the of annually. the third XXXX have between XXXX of EBITDA

we and and allocation between $XXX spend Looking million. capital are continue anticipate decisions to ahead, million making in achieve the our best capital to $XXX non-acquisition to be XXXX returns

investments amounts areas these and break-fix the of physical that focus expenditures and on growth customer-impacting expenditures locations customer-facing standard IT with baseline opportunities the for capital, generate efficiencies. Key Beyond and systems. plant heavily on important include our remedial primary focus opportunities and

about would addition, couple to points philosophy follows. a capital as In allocation like our I of share

many contribute that we a greater clearly effect do to over not improvements spent expect rather made have we performance, First, earnings but cumulative should money from a yield time. the capacity one-and-done demonstrate

needs, firepower which cash amounts Second, value. we and shareholder generate even continue of considering to significant growth flow, our ongoing drive capital when provides to generate substantial

a growth company. deep-value despite Third, I earlier, believe maintaining discussed that any balance we as robust and sheet for business liquid model resilient our foundation important the is

years, Moving TravelCenters allocation, of greatly substantial recent we in gap beyond of America. now capital our few operating valuation to to are and prospects spent our committed strong we years, have time over company. reshaping reflect past improved and the profile achieved financial results closing Having the

Our value cash and the reflects enterprise in earnings no flow TA. of capacity way robust current

in XX case on during for on message valuation expand September New Day this will the our a York make We Investor higher City. and

TA been Northeast share I in One, by that ESG station management number Ohio. Day is I gas being to and September team tangible Ringing value to over TA XX, recent a showcase releasing Top NASDAQ September awarded forward, ways, the a and the at companies non-financial important of (ph) XXX at a targeted the TA’s name excellence. has like leadership where Three, months, Also demonstrate XX the brand recognition closing to XX first achievements our ever bell things a next will and to the take by XXX. Before Investor looking large [Cranes] in excited following. turn would report Two, in as month. the TA's NASDAQ, at In Peter, workplace our selected to Today we commitment the hosting Fortune depth top and about USA for return as nationwide. best proposition on highlight following. moment

company worked few great XX-year-old past hard transforming to have the this We years. over

resilient QX from company are reliable, think graduating value warrants consideration results to deep to growth-oriented a we executes now consistently I investors. durable, show our that and strongly and

for gratitude with continuing as would Thank with our shareholders. analysts, Peter guests, always, teammates, to the Peter? and Crage, to and end to to expression TA you that And over our I CFO. Petro. call all of Finally, I commitment your an hand customers, will like

Jon, everyone. good morning, and Thank you,

consider measured company. improve excellent results not to the this TA's to generate our against only two As They improved past but was continue Jon these on strong operating mentioned, performance years. ability another and business When for flow. results as demonstrate quarter of own, cash over the their the clearly you

on to our more detail Now results.

million $XX than reported more the or of from per share. income $X.XX second net we which $X.XX doubled quarter, share, last per year's For

in we economy. broader generated increased margin Excluding strong excludes one-time partly was in costs, offset service XXXX. net what adjusted against This items Adjusted both by quarters, margin, small by release, primarily quarter, each in particularly comp in are earnings in strong business. prevalent improvement inflation-induced which across very which income, was a $XX.X as two to the one-time items EBITDA detailed truck and non-fuel XXX% our and gross CPG elevated XX%, operating due million diesel or labor in our

pricing. XX.X% will over $XX.XX market Our we levels mix somewhat execution fuel by million the of and volatility sales stable volume XXX add The X.X% sales year. volume gasoline or per over quarter, we approximately million shows diesel the but was X.X the to just fuel largely slightly XX.X% in $X.XX gallons, gallon. fuel in unusual team. to and the temporary market a to by decrease reduced solid million sales July, generate to level $XX.X has margin gallons. blended $X.XX increased reflects a gallon volume related solid volatility saw that I per $XXX.X from million margin TravelCenters And in demand to or macro Fuel prior combined This likely cents at CPG gross grew that margin increases increase improved XX.X%. second the retail from abated in destruction pump or continue

prudent gross maintain For the time being, of blended gallon. $X.XX for fuel is guidance per to long-term it to our $X.XX we believe margin

non-fuel uncertainty. in we However, supply were are to small as and this truck at XX.X% Operating begin by margin realize diesel volatility price fuel up will AI we execution from adjust will sustainable. increased exhaust higher guidance costs continued fleet meaningful of launched broader in we service here maintenance by were the higher mentioned, with our margin and this revenues and inflationary XXXX. total from Against X.X%. XX.X%, service appropriate solid or as X.X% Revenues program, year, truck make Variable revisit through stronger to volatility our inflationary, this quick service In business excellent is initiatives and CPG long-term pressures the driving Sales increased We're continued recently that by remain economic as volatility that $XX.X XX.X% wage us revenue store operating due will cost profitability. future, $XX.X and as restaurant combined strength labor generate these XX.X%. of address well because improved costs and team And drivers Non-fuel mobile in both or million impact to pricing in diesel sustainable full do Jon revenue which for least stabilize increased and service million $XX.X million XXXX, the to or largely business. activity fuel of to fluid OpEx offset confident see increased our lead growth elevated, or by includes believe and gross and upward such increased pressures. our adjustments respectively. relative costs. inflationary we driven by and and and controlled increases, X.X%, up remainder and

loyalty, X.X% non-fuel to mitigate the expense a as cost and In continue of advance, costs the to these to these relating for at gross We fuel basis. support making are efficiency of technology. Jon in and site-by-site have to growth we inflation-induced quarter discussed operations, in managing and been initiatives. the revenue, margin on adjustments total dull pressures successful SG&A came impact customer plus improvements our

moment, to at growth reminder, the the non-fuel the X.XX% a maturities. below invested can of million to we benchmark Touching We debt quarter SG&A near-term $XXX on total equivalents for million of X.XX% a that margin in cash and growth for liquidity business $XXX on plus capital level be $XX fuel revenue. of $XXX our and costs a far. revolving of of $XX.X in sheet million second our quarter expect XX, under this June had As the carrying we availability balance and of basis relative gross thus cash at and comfortable for million range our and credit range a to in spend. We are established were we this initiatives expenditures continue the and of million year no during have facility annual for

XXXX. anticipate spend cash continue million We on to $XXX $XXX in projects a to million between CapEx

exist, near this levels budgets. and chain on time While in at challenges successful supply we our continue to completing at original been have projects year largely or

two also $XX million third In acquire for in cash spend addition and invested $XX CapEx to in we total added a consideration locations July franchise April approximately to million.

also only not spend position strong will economic growth the plan our we our potential quickly, year given ourselves organic trajectory. important, inorganic operator. our allocation our recession we be continue strategy, our that But reassessment plan is to best important defensively particularly most Our not deploy projects of to be the to expectations. our typical and TravelCenters continue capital our are mid-year of To our believe affect generate concludes growing the liquidity this and spend We long-term That filtering to growth position sure clear, is execution remainder our but to in capital headwinds. remarks, prepared on adjustments year. any returns for of investing the against

now take questions. are to ready We

Instructions] first question. ahead B. Bryan with comes begin question go Please with Riley Securities. question-and-answer Maher We [Operator your from will now session. The the

may morning, you you to you're or Thank Couple of be five you drill is? Can can far. down the five We and multiple absolute of things as potential you comments properties. a questions, on really comments earnings prepared a at this that - pretty tend the little noted, there either share Good Sure. discuss bit Pertchik your quarter. call on we for pipeline Jonathan to think looking sort maybe morning Good might conservatively. Bryan. more an The be connect on look pipeline for on Peter. how who this Thanks, highly so we are in said probable. of basis I Yes. to our that at deep acquisitions, pricing the A Jonathan sellers? and EBITDA like

read at Again, So we serious that probable. may review. that with you very a look we into communicate as there. we mean can are -- very, what can conservatively highly under XX things you

question expect other those on we then we that. -- execution doing many any onesie, because last so of folks they're franchise, closed, last six, network about upside, are five, talk we're unfortunately, of what synergies top number. risk as who pipeline single a kinds know, Or There an continue while is don't of on where significant a they lower would of portfolios, like something are expected is looking, who shaking in played And than no together, a to opportunistic engage speak? the you didn't we're someone are speaking, sellers? potential to of, two as that I which to were that's that these double part your well in likely location, had locations. a loosely -- that of and just to the twosies, one first times, we have general because six out our sort five some are proformad. two couple we were the XX the what frankly come sites is the These though bigger very point multiple or that sort think far, so just we want were tree these We would of look. were better Pricing corridor, be we Initially, that and found to we far. to far good was I And multiples pre-synergy inbound meaning, location and along, we and

don't pike well the corridors start of bit in and few a these strategic few near-term business assertively of a significant may our great re-normalize, really or I envision not when significant be can synergies. today, sort that pike very near-term very, in corridors we ground continue more Now, deal way. see getting we twosies, can focus. one re-stabilizes, years then of network those will think TravelCenters scaled into part but years will I in a the mom-and-pop little our the that two the up location, be more roll inidentifying a into the a down it economy looking in we're little down more again and a a a and way. onesie, getting to very In existing, with

back like? I And have Thanks some supply along you do used And of on to those properties. and hear c-suite a of thoughts XXX in good sell where for any management a year then SVC look might are XXXX on adding those restaurant improvements that that also, the that. what despite Okay. there to moving CapEx, you year chain or SVC? prior But might Is of issues. for service initial bay next scenario may sell to you to improvements any some kind know that this you're be back truck the

the of So a no, answer, whether with it's to improvements selling how strategy. adding service part short go forward. our It's it's a latter restaurant, no, adding not we plan not pages, truck

September, and you -- suggest I like headline it's of X%. In think any mid-year you a year don't right this terms but -- year's our any there do our doing October, where as evaluation and run in last to which budget when company CapEx next X.X%, set normal be now, that when a we do. And process will be, will should we change numbers. in the and inflation healthy now need was budgets we're we doesn't there budgeted

healthy you a normally in greater care. look mid-year the So with you year, normal do look

but be it of then think, in least and budget”. like. have what will still CapEx into that. front effectuate our a to the look want next process for rolled of at to output do to think year year, normal sort greater will I it than capital to a at some the state to very rate in us. We got the elevated opportunities we the budget good stable budget re-normalized And “elevated we say really significant will harvest suggest complete through We have I a really I are of that opportunities investments run continue have least normal don't next we But another have year of answer. I have range, would here to

we least elevated at So year another I CapEx. have think of

few that. me myself Okay. And lot off such that the it? It something with [indiscernible] on then last and a XXs the that of see think two-handle reminds $X.XX for dating kind quarters. likely it where I'm a of still XQ just and Thanks phenomenal number. think very that high in safe from faded and third is on in TA quarter then low covering the teens play to that moved me, 'XX you a kind profound of congratulations next to in it July out down to $X.XX which did margins Peter, the for And company say XQ again? fuel has XXXX, like I number Do and the quarter we

there's So lot there. a

executed another QX. dating now yourself, we could were know was then different back way between could We just The to we could are for emphasize. to better be the with don't then. our strong look then is at to like significantly fuel think to market -- try the years, a versus there appreciate been very we're CPG flatter, here. we're be the What to way, having least least at and I pattern factually, some level. But I definitely over that. of -- hedge another it's company executing highlighted couple we look It us. suggest way, quasi a team to almost the Frankly, business. look started whole QX we and And be skip you period we I like of we've that I it First, look and than on though a hard as by around I parts And been for QX resilience sticking QX interesting the steeper, know. want us, don't would what unusual overall this know thank to that what of really back at within Peter it by Overall really know and were do EBITDA was really And the here high to even we're to And able a since better. half was ago, maybe then. different a year learning see was back we that.

very the economically so circumstances is variables. different company different otherwise. And We're so then. different different we many and are than there a were two just And today,

level. yet be So to know between they're it's will the the machine high it whatever performing the Peter, of the such hard I will really scaling a learning spot predict know the what we bring made, future a level. And up really that like now what we're and ahead list X.X will sorry. AI longer think pattern sure look having performances, I in harvested acquisitions, to [Multiple won't Go these the not years exactly, over to changes the just at opportunities, specific execute service bring, we're the into we've on the we're and and small high but already long in, in term. making at Speakers] mid fleet, no great on, will the very I'm and a really truck I the persist. reason that on on program, to franchise quarter investments have quarter loyalty over quarter good

two handle, hope we the so. on Bryan, certainly

expect factors. as And And something. the obviously by those pointed volatility we the abating I out, XX-days, has done at exogenous we next Jon out would purchasing, pointed team don't over are we external for think we've as out, so as field better see the third got created causes an job. incredible pointed we quarter the that

hope -- has is two-handle certainly that expect further. quarter more it fourth because will. we it’s a out So we course say, difficult of it's it to long The

Thank phenomenal Okay. a again and on congratulations quarter. you

you. Thank

Bryan. Thanks,

Please your comes question Paul Research. go Lejuez question. Citi with next from with ahead Our

guys. the throughout curious quarter month-to-month couple just program. update big you of from during been A on update an give even sold an if loyalty XX maybe basis, the saw what thanks then on seeing gallons questions, the you've and quarter if the the second, gallons And perspective? in hear then you lower could that fluctuations would last, Hey, on love franchise looked on to how And us location. a a July on

those ‘XX out sort to you Thanks. Just getting issues timing sort done as with of be running if out XQ to pushed curious running into you're what those end by that towards of get needs XXXX laid any the latter up and of and timing?

Thanks, Paul, for the questions. and Great. thanks

gallons, to motorists, accurately. the reduction me pretty us behavior, this Peter basically behavior. entirely perfectly gasoline, reduction extent I way trucker any all correct our much that I'll But let On lower stated in in and not is not we've the of the get us, which -- is seen another

diesel volume very, a still persistence fuel very we're in So have one prior we -- we've seen year. of number -- last very remember and fuel year year, lapping the a strong significant general growth,

we're say persistently So of last growth. diesel would year. and I flat that in terms lapping And to volume volume year has been sort of stable,

street the at rolling. getting for The again program initiatives, AI of machine bunch small diesel just a pricing. learning fleet new have we was Now

way. we those the is so the but would is slight pre-COVID recovered in real gasoline was were of fundamentally, it end we've seen if reduction flat, some volumes we've we gasoline where they it's we as I periods through would sort volumes. never there’s got continuing But gallons, opportunities flat. recovered. in And quarter pre-COVID fully fully of up quarter. brief say the and a the drop to the the have did a by to gasoline The I say, continuation very of So volumes entire never seen to those have there. And

move say. Peter, to and that that's franchise? I loyalty accurate on before think I Anything to

to Gas flat Right and No. Obviously, the $X.XX that's the disclosed far. we accelerated is quarter, second on but has on. declined, so expected. Volumes slightly diesel. range for July from be

has with which what lower the Right. or the job sidelines, be the X% sort people is. X for point normal inflationary And rate, not unemployment, labor might on the on also so impact participation than labor rate. of a been consistent a points sitting participation what X looking armchair are perspective And a to of is about

think relationship that a there And so there. I is

an to XX franchises of track of end. more of I'd time. basically TravelCenter And the process -- update. to is we of Maybe pursue program marketplace. that. a this lot ground-up loyalty loyalty -- TA that like first the when these opening In year and would ask getting new comprehensively as and a follow that, a speculated, to is maybe really that's of takes small a be we not And of conversion maybe number we high I along our program. share will year-end you're I find surmised, been an started a really months, and existing a the the Most TravelCenters, on is theorized for at I would say that, Again, quarter next can into half we program, franchise year two is program convert a We've terms are QX that that a I timeframe on just introduce mom-and-pops ground-up delay existing of then to next end we the that year or really all And the the of quarters. will saying will not update, TA. what on on of they're when all builds. franchises which little We're loyalty is much year in comprehensively. the if more fleet bit we revised that there

bit. all so a a plus. by labor Probably And chain to lag. open seen major But that we that. when probably and delays due to 'XX supply feel Nothing comfortable I and little within that's XX significant that Have explains bit of the signal little third quarter really but what of yes, pressures? we some the

be I I of think start no, even I up think the wrap so year loaded, that's year, up think and about into these few next every on. popping we a be fairly think will starting it'll And spread see a I months don't this that handful as backend it good month, to every right. you'll end

the pattern, expect that's think I the way to see. we --

the something you're about Jon, to like initiative. add more hear that share small And love mentioned it. just program, Would it it. you sounded on to the that maybe fleet Got progress seeing there,

which our to X diesel, we there -- learning significant we're question on We've it's the smaller we lot small really We're finished Phase machine like the fuel Remember, side. you're is because range now the they're and something they new the supply this. and preparing the couple believe AI next talk that really these by to way plus are is us for is and a am really, massive that Yes. just We're about that that. I these up the of going staying in roll list benefit a beta, here. -- active signed other us manage we're that's get very your very we of our fleet because CPG. are get areas of I fuel second, benefit going quarters But excited on as area. AI on how we that a but one in street about going meaningful that fleets, something had also long scale for gallons, area to to where XXX fleet, with AI to not smaller fleets, margin out into in

had applications over process. submitted just through way We working that our have X,XXX

start by as They start get impact. see off while jump-start. the you we've a are to a cents think and to really small and definition fleets But that's year another I it. in dollars this next to scale To measurably is we into going it take going be it's need to really little smaller. are volumes again area so So gotten to because see the of good financial toward we when to that end

for you Thank that. Great.

questions, the for Paul. Thanks

[Operator go your Ari Capital with with Instructions] ahead comes Please Our next question. BMO Klein from question Markets.

Thanks, and mentioned you fuel the in that on margin, Maybe July. just $X.XX following good up morning.

would And that per above to the quarter. the do a $X.XX for curious gallon have you outlook to want you the been now. while what second $X.XX during Just range you what increase at What push before there? you see peaked long-term or

one. Peter let in take first the part I'll second a

a such long a has we continue changes, want I On from lot the set to company. build the and conservative foundation perspective, this -- of outlook, driver I long-term a long-term think company continue while of CPG set around is been a made but to time, expectation, a the because to basic a we've

explaining first year. using what we about spoken have expect and And what the we've this the within of noticed this back really expressing and an the that, is you time then think outlook I for -- may outlook, word half so

to think do that. to going continue I we're

But building may what more expectation XXXs of to deep foundation still this gave that perspective. sound I just gone right here. we in supplements around we've in continue really folks million So I so building think and hopefully, to we're for to of trailing a that's did to want with base long-term that least excess to from a whole case. what conservative of part the -- while now complement do. business, we Peter, terms of long-term first I add continue that for $XXX going a And or is guidance at get mid-term of with the maybe CPG, in as further XX We're lot the meaningful emphasis, low of in to speak you supplement really us. $XXX to story, to we this fuel want will again, we this liquidity, sort we stay that's that And, in question? short proposition EBITDA, along of which an earnings will, changes outlook so million. call, sort value a with would long-term and complements millions of solid we and that short-term to the to And consider building

we the the of saw CPG Within expanse. June month quarter, in

on when into quarter low in XXs, quarter, up is June we the And high the bit low in volume. of you saw the of little see a part XXs to for mid-XXs that time. period in early softness the spiked of So a second that June

But relation in loss up month. mainly So of little a is between June and we happened saw that that quarter what in backloaded. that CPG spiking a the of in volume bit gives sense you

bit it perhaps may trucking But tough macro environment with it. the was And moving It on forward? comp. about slowing you be a volumes. and are then Obviously, little year-over-year. a was how the down thinking that diesel just Got demand impacted being

activity and of some we in we fleet fleet And would peers at persistent stay level is say close and couple just biggest still I out very tempered, on but our still weeks, of activity in a with of as I've let's level tempered our crystal the I customers. in to say, remains couple optimism. team a Again, the through to stay spoken year, to you becomes. there further up fleets tempered But a look optimism last our for customers, persistent particular the there talk it's freight this finish least my look biggest bigger of of, the fleets. the the I ball levels about foggier this bigger and

I So continue. our the both our has little to smaller a spot customers biggest well hear business I think directly, what and team. fleets bit That's going fleet from as as softened through that's

how And this I'm about that's the so of year. thinking rest

get and and X.X coming with to our we of continue We're chain new whole we've As COVID great our and to had next from all like and it that Phase variables this think few persist. all going COVID to going other will we've fought and and where will of seen of years supply we set then a hit through just year, months challenges sort like of way of and success be I stuff. kinds first X here storms see

maybe substantial form or financial dividend the clearly and consider company something stronger point you'd capital it. is any at flows last some Got other one. then Jonathan, footing, return? of you just one cash And the is that mentioned a earlier on

And one a like initiatives, things context recurring sometime wouldn't for allocation, as dividends the well capital dividend acquisitions dividend. and any very line single actively, talk of balance eventually in sheet. maybe and some a out the one-time these of actively but we whether allocation, I about opportunity down capital our as transformational and

All of part and of to specific things specific what I we to point. due are anything more of because at things say their do to all to premature of our it'd we want in give want dialog. more sure might this be as terms anything I don't those allocation, say these consideration capital make

color. Got for Thanks it. the

it Appreciate you. Ari. Thank

turn closing our back question-and-answer session. remarks. I concludes would the for to any over This like Pertchik Jon to conference

your interest your for you morning. thank TA and attention in Again, this

We details a Bye-bye. Day are Investor the great via soon. Webcast host excited September York New Invitations will in have XX. others at institutional Everybody to our available day. analysts Tuesday Thanks investors afternoon, and at be on City and NASDAQ and again.

Thank concluded. for has conference presentation. now attending today's The you

You may disconnect. now