For the full fiscal year, total revenues [image-nocss] were approximately $9 billion, a 30.2% increase from $6.9 billion in fiscal 2007. Net income for the year was $31.8 million, up 18.9% from $26.7 million last year. Diluted earnings per share were $1.43 for the year, up 22.2% from $1.17 a year ago. EBITDA for fiscal 2008 was $247.2 million, up 15.5% from $214 million in fiscal 2007.
"We are pleased to be able to deliver improved operating results for the fourth quarter and for fiscal 2008," chairman and CEO Peter J. Sodini said in a press release (see related story in this issue of CSP Daily News for details about The Pantry's conference call). "As gas margins improved with the dramatic pullback in oil prices, we were able to fully leverage the aggressive actions we took throughout the year to reduce operating costs.
"Our strong fourth-quarter results, together with our capital spending reductions during the year, enabled us to deliver free cash flow of approximately $55 million for fiscal 2008. The retail environment clearly remains challenging, but with our ample liquidity and improved profitability, we believe we are well-positioned to again consider strategic 'tuck-in' acquisitions in our regional markets that we believe will be accretive for our shareholders."
Merchandise revenues for the fourth quarter declined 0.7% overall and 2.5% on a comparable-store basis from last year's fourth quarter. The merchandise gross margin was 34.7%, compared with 37.0% a year ago, primarily reflecting increased LIFO charges due to higher inflation factors. Total merchandise gross profit for the quarter was $149.7 million, down 7% from the corresponding period a year ago.
For the full year, merchandise revenues totaled approximately $1.64 billion, up 3.9% overall and down 1.7% in comparable stores. The merchandise gross margin for the year was 36.4%, compared with 37.2% in fiscal 2007. Total merchandise gross profit for fiscal 2008 was $595.1 million, a 1.6% increase from the corresponding period a year ago.
Retail gasoline gallons sold in the quarter were down 4.7% overall and 6.8% on a comparable store basis. Retail gasoline revenues rose 33.1%, reflecting a 39.5% increase in the average retail price per gallon to $3.85. The retail gross margin for the quarter was 19.2 cents per gallon or 5% of gasoline revenue, compared with 10.5 cents or 3.8% a year ago.
"When the gas market turned in our favor, we had a streamlined cost structure in place that enabled us to more fully leverage the improved margins," Sodini said on the conference call, referring to the past year's cost cutting and restructuring.
Retail gasoline gallons sold for the year were approximately 2.1 billion, up 3.5% overall and down 4.4% in comparable stores. The retail gross margin was 12.4 cents per gallon or 3.6% of gasoline revenue, compared with 10.9 cents or 4.3% in fiscal 2007. Gasoline gross profit for the year totaled $263 million, up 17.0%.
As of Sept. 25, 2008, the company had $217 million of cash and cash equivalents, with an additional $132 million available under its revolving credit facility.
The company also announced the following initial guidance ranges for its expected fiscal 2009 performance (excluding potential acquisitions):
Merchandise revenues: $1.60 billion to $1.66 billion. Retail gasoline sales: 2 billion to 2.1 billion gallons. Merchandise gross margin: 36.0% to 36.6%. Retail gasoline gross margin: 12.5 cents to 15 cents per gallon. Store operating and general and administrative expenses: $620 million to $630 million. Depreciation and amortization: $105 million to $110 million. Interest expense: $85 million to $90 million. Based in Sanford, N.C., The Pantry is the leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience-store chains in the country, with revenues for fiscal 2008 of approximately $9 billion. As of Nov. 13, 2008, the company operated 1,653 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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