CARY, N.C. -- As The Pantry Inc. finds itself battling declining comparable-store sales performance, it's also preparing to hand the reins of the chain to a new chief executive.
"In preparation for the new CEO's arrival, we've considered a five-year strategic plan to provide a foundational view of the company and all the major initiatives planned or currently under way," interim CEO Edwin J. Holman said on an earnings call with analysts Tuesday.
Though not offering a specific timeline for naming a new top exec--to fill the shoes of Terry Marks, who resigned in September--Holman's comments suggested a new CEO could be named before the next quarterly earnings call in three months.
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"Considering I'm taking part in this call means I remain as interim CEO," he said. He also summarized the key attributes the search committee has for The Pantry's new chief: "We're looking first of all for a terrific leader, who has retail experience and a merchandising and operational background, more to the merchandising side than the operations side. … The candidates we're looking at also have foodservice experience."
The update on the CEO search came as The Pantry reported comparable-store merchandise sales in first-quarter 2012 increased 2% in total and 4.4% excluding cigarettes. Total merchandise gross profit for the quarter was $142.2 million, an increase of 1.2% from the first quarter a year ago.
"We delivered $43.8 million of adjusted EBITDA in the first quarter of fiscal 2012, an $11.7 million increase compared to the prior year, primarily due to a more favorable fuel pricing environment and lower expenses," Holman said. "As we continue revising our pricing strategy to position the company for the longer term, we remain focused on improving our sales trends, expense management, and debt reduction."
Net loss was $2.9 million or 13 cents per share. This compares to a net loss of $12.2 million or 54 cents per share in last year's first quarter. Excluding the impact of impairment charges and loss on extinguishment of debt, the net loss for first-quarter fiscal 2012 was $2.6 million or 11 cents per share.
Retail fuel gallons sold in the first quarter decreased 6.5% overall and 7.4% on a comparable store basis from last year's first quarter. Fuel gross profit for the first quarter increased 10.2% compared to the same period a year ago, primarily due to an increase in retail fuel margin per gallon to $0.122 compared to $0.104 a year ago.
Total store operating and general and administrative expenses for the first quarter were $154.4 million, a decrease of $4.9 million from the first quarter last year. This decrease was primarily due to lower lease and other store facilities expenses, as well as reductions in general and administrative expenses.
The company had $150.7 million in cash on hand and $123.6 million in available capacity under its revolving credit facilities as of December 29, 2011, allowing it to continue to execute on its core strategies.
Based in Cary, N.C., The Pantry Inc. 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. As of February 3, 2012, the company operated 1,618 stores in 13 states under select banners, including Kangaroo Express, its primary operating banner.
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