SANFORD, N.C. -- The Pantry Inc. has reported total revenues for the first fiscal quarter ended Dec. 29, 2005, of approximately $1.3 billion, a 39.7% increase from last year's first quarter. Net income was $33 million, or $1.45 per share on a diluted basis, more than double net income a year ago of $12.4 million, or 59 cents per share. The results for the first quarter of fiscal 2006 include approximately five cents per share in expenses related to the company's refinancing of its credit facilities.
Our first quarter performance was exceptionally strong, [image-nocss] reflecting unusually favorable conditions in the gasoline market early in the quarter, and benefits from prior year acquisitions, said Peter J. Sodini, president and CEO. In addition, we continued to benefit from solid increases of nearly 5% in both comparable-store merchandise sales and gasoline gallons sold. We believe that our ongoing strategic initiatives, including the rollout of additional foodservice offerings and private-label merchandise is helping to drive growth, as are the attractive demographics of our southeastern markets and the appeal of our modern store base, most of which has been remodeled and rebranded under the Kangaroo banner over the last three years.
Merchandise revenues for the quarter increased 10.3% overall and 5% on a comparable-store basis. The merchandise gross margin was 37.5%, a 120 basis-point improvement from 36.3% a year ago. Total merchandise gross profits were $118.7 million, a 14.1% increase from last year's first quarter.
Comparable-store gasoline gallons rose 4.6%, while total gallons sold increased 20.1%. Total gasoline revenues were up 52.6%, in part due to a 27.1% increase in the average retail price per gallon, to $2.44. The gross margin per gallon was 21.2 cents, compared with 14.6 cents a year ago. Gasoline gross profits for the quarter totaled $86.6 million, a 73.6% increase from last year's first quarter.
Sodini added, We also made excellent strategic progress across several fronts during the quarter. In October, we announced an extension of our gasoline supply agreement with CITGO, as well as a new agreement with ExxonMobil, enhancing the flexibility and security of our gasoline supplies. We announced agreements for two accretive tuck-in' acquisitions involving a total of 58 stores in Mississippi, Louisiana and North Carolina. In addition, we strengthened our capital structure through a $150 million convertible notes offering and a refinancing of our credit facilities, which will reduce interest expense and increase our capacity to finance future acquisitions.
Sodini concluded, As we recently announced, we have increased our earnings per share guidance for fiscal 2006 to a range between $2.95 and $3.05, excluding pending or future acquisitions. This increase reflects both the strong first quarter results and our assumption that gasoline margins will be closer to historical levels over the balance of the year, including the normal seasonal weakness in the current quarter.
Sanford, N.C.-based The Pantry has 1,401 stores in 11 states under banners including Kangaroo Express, its primary operating banner, as well as Golden Gallon and Cowboys.
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