SANFORD, N.C. -- The Pantry Inc. has announced preliminary financial results for its third fiscal quarter ended June 28, 2007. It expects to release results for the quarter on Aug. 2, 2007. The company cut its profit outlook and issued fiscal third-quarter guidance below analyst expectations because of low gasoline margins.
Subject to final adjustments, the chain expects to report diluted earnings per share for the quarter in a range between 45 cents and 50 cents, compared with earnings of 86 cents per share in the corresponding period last year. Results [image-nocss] for the third quarter of fiscal 2007 will include a charge of approximately 6 cents per share for deferred financing costs in connection with the company's refinancing of its credit facilities.
These preliminary results primarily reflect our relatively low gasoline margins during the quarter as compared to the prior year quarter. This period was characterized by upward pricing pressure due to production constraints at U.S. refineries. We now expect earnings per share for the full fiscal year to be between $1.65 and $1.80, which is below our previous guidance range. EBITDA for fiscal 2007 is estimated at a range of $234 million to $240 million, said Chairman and CEO Peter J. Sodini.
Although fiscal 2007 has been a challenging year, we do not believe there has been a material change in the long-term fundamentals of our business. In fact, our competitive position in the marketplace has clearly improved with the strategic acquisitions we have completed this year. In fiscal 2008, assuming average gasoline margins are more in line with historical performance in the mid to high 12 cents per gallon, we would expect earnings per share and EBITDA, excluding future acquisitions, in a range between $2.70 to $3 and $304 to $316 million, respectively.
The Pantry, Sanford, N.C., is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated c-store chains in the country, with revenues for fiscal 2006 of approximately $6 billion. As of June 28, 2007, the company operated 1,642 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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