SANFORD, N.C. -- The Pantry Inc.has announced financial results for its second fiscal quarter ended March 30, 2006. Total revenues for the quarter were approximately $1.3 billion, a 39.1% increase from last year's second quarter. Net income was $9.2 million, or 39 cents per share on a diluted basis, more than double net income a year ago of $3.3 million, or 16 cents per share.
Merchandise revenues for the quarter were up 13.6% overall and 5.4% on a comparable-store basis. The merchandise gross margin was 37.6%, a 40 basis-point improvement from 37.2% [image-nocss] a year ago. Total merchandise gross profits rose 15%, to $121.5 million, and accounted for approximately 72% of total gross profits.
Gasoline gallons sold increased 23.7% overall and 4% in comparable stores. Total gasoline revenues rose 50.1%, in part due to a 21.5% increase in the average retail price per gallon, to $2.32. The gross margin per gallon was 11.1 cents, compared with 9.9 cents a year ago. Gasoline gross profits for the quarter totaled $47.3 million, a 38.8% increase from last year's second quarter.
Chairman and CEO Peter J. Sodini said, "We are very pleased with these results during what has historically been a seasonally weak quarter. The solid increases in comparable-store merchandise sales and gasoline gallons sold were achieved on top of increases of approximately 7% for both merchandise and gasoline gallons in last year's second quarter. In addition, this year's gains were achieved in spite of a shift in the timing of Easter weeka strong sales period for our storesfrom the second fiscal quarter a year ago to the third quarter this year. We believe these results reflect the cumulative benefits from our store conversion and rebranding programs, our continued focus on higher-margin foodservice and private-label products and the successful integration of strategic acquisitions completed over the past year."
During the second quarter, the company completed two acquisitions involving a total of 58 convenience stores in Mississippi, Louisiana and North Carolina. Also, it acquired four stores in single-store transactions and completed development of two new stores during the fiscal year. It also announced a definitive agreement to acquire Shop-A-Snak Food Mart Inc., which operates 38 stores in Alabama. That transaction is expected to close in the third fiscal quarter.
For the first six months of fiscal 2006, net income was $42.2 million, or $1.84 per share, compared with $15.8 million, or 74 cents per share, in the corresponding period a year ago. Results for the first half of the current year include approximately five cents per share in expenses related to the company's refinancing of its credit facilities in the first quarter and four cents per share for expensing of stock options. EBITDA for the first six months of fiscal 2006 was $135.2 million, a 60.8% increase from a year ago.
Sodini concluded, "The Pantry is well-positioned to continue driving growth both organically and through strategic acquisitions."
Headquartered in Sanford, N.C., The Pantry had 1,458 stores in11 states as of March 30, 2006, mostly under the Kangaroo Express flag.
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