SANFORD, N.C. -- The Pantry Inc. said that for its fourth fiscal quarter ended Sept. 28, 2006, total revenues were $1.7 billion, a 22.5% increase from last year's fourth quarter. Net income for the quarter was $26.7 million, or $1.16 per share on a diluted basis, a 5.2% increase from $25.4 million, or $1.12 per share, a year ago. Results for the fiscal 2005 period included charges totaling approximately 22 cents per share related to store closings, impairment charges and uninsured losses associated with Hurricane Katrina.
For the full fiscal year ended [image-nocss] Sept. 28, 2006, revenues were $6 billion, up 34.6% from fiscal 2005. Net income for the year was $89.2 million, or $3.86 per share, a 54.3% increase from $57.8 million, or $2.64 per share, in fiscal 2005.
Chairman and CEO Peter J. Sodini said, We are pleased with our record earnings for the quarter and the year, which were achieved on top of very strong results for both periods last year. We clearly benefited from favorable conditions in the gasoline market during the first and fourth quarters of fiscal 2006. More importantly from a longer-term perspective, we continued executing successfully our regional acquisition strategy and our ongoing initiatives to strengthen our merchandise operations. For the second year in a row, comparable-store merchandise sales increased approximately 5%, and total merchandise gross profits for fiscal 2006 were up 15%.
Merchandise revenues for the fourth quarter increased 12.1% from a year ago, and were up 3% on a comparable-store basis. The merchandise gross margin was 37%, an 80-basis-point improvement from 36.2% in last year's fourth quarter. Total merchandise gross profits for the quarter were $138.5 million, a 14.6% increase from a year ago. For the full fiscal year, comparable-store merchandise revenues increased 4.9%, while total merchandise gross profit rose 15.3% on an 80-basis-point improvement in the gross margin to 37.4%.
Total gallons sold in the fourth quarter were up 13.6% from a year ago, and were up 0.3% on a comparable store gasoline gallons basis. Gasoline revenues rose 25.9%, in part due to a 10.4% increase in the average retail price per gallon, to $2.75. The gross margin per gallon was 17.3 cents, compared with 19.4 cents a year ago. Gasoline gross profit for the quarter totaled $82.5 million, a 1.3% increase from last year's fourth quarter. For the full fiscal year, comparable store gasoline gallons rose 3.1% and the gasoline margin per gallon for the year was 15.8 cents, compared with 14.3 cents in fiscal 2005.
During fiscal 2006, the company acquired 113 convenience stores through three major acquisitions and 10 smaller transactions, an increase from the 96 stores acquired in fiscal 2005. The larger acquisitions included 39 Interstate Food Stop stores in Mississippi and Louisiana; 38 Shop-A-Snak stores in Alabama; and 19 stores operating under the TruBuy and On-The-Run banners in North Carolina. It also developed and opened five new large-format stores in fiscal 2006, and expects to accelerate the number of new-store openings to approximately 20 in fiscal 2007.
Sodini said, The pipeline of potential acquisitions for fiscal 2007 appears very promising, and we would expect to acquire at least as many stores this year as in fiscal 2006. Partly in anticipation of this continued growth, we made some investments during fiscal 2006 to strengthen our management team and overall infrastructure, which pushed expenses above our targeted levels.
He concluded, Assuming gasoline margins more in line with historic norms and continued solid momentum in our merchandise operations, which generally contribute two-thirds or more of our total gross profit, we believe our earnings per share for fiscal 2007 will be between $2.80 and $3. This guidance range incorporates the likelihood of a relatively low gasoline gross margin in the first fiscal quarter, reflecting current market conditions. The guidance does not include any potential accretion from future or pending acquisitions. Given the inherent volatility in the gasoline business, our primary focus is on sustaining the growth in our merchandise business and steadily expanding the store base to leverage our strong regional market position and increase our earnings potential over the long term.
Headquartered in Sanford, N.C., The Pantry had revenues for fiscal 2006 of approximately $6 billion. As of Sept. 28, 2006, the company operated 1,493 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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