SANFORD, N.C. Southeast retailer The Pantry Inc. said total revenues for its third fiscal quarter were approximately $1.6 billion, up 41% from the corresponding period last year. Net income rose 22.2% to $20.3 million, from $16.6 million a year ago. Diluted earnings per share were 86 cents per share, a 14.7% increase from 75 cents in last year's third quarter.
Merchandise revenues for the quarter were up 14.8% overall and 5.8% on a comparable-store basis. The merchandise gross margin was 37.4%, an 80 basis-point improvement from 36.6% in last year's [image-nocss] third quarter. Total merchandise gross profits increased 17.3%, to $139.1 million, and accounted for approximately 68% of total gross profits for the quarter.
Gasoline gallons sold increased 16.8% overall and 2.3% in comparable stores. Total gasoline revenues for the quarter rose 51.1%, in part due to a 29.6% increase in the average retail price per gallon, to $2.76. The gross margin per gallon was 14 cents, compared with 12.3 cents in last year's third quarter. Gasoline gross profits for the quarter totaled $64.8 million, a 33.7% increase from a year ago.
Chairman and CEO Peter J. Sodini said, These record results reflect our continued solid execution of the basics at the store level, the impact of successful acquisitions over the past year, and a favorable industry environment in the gasoline business. We are particularly pleased with the strong 5.8% increase in comparable store merchandise sales and the 17.3% increase in overall merchandise gross profits. Our results continue to benefit from the rebranding of most of our stores under the Kangaroo Express banner over the last few years, the ongoing fine-tuning of our merchandise offerings to meet consumers' convenience needs, and our focus on higher-margin opportunities in food service and private label products.
For the first nine months of fiscal 2006, net income was $62.5 million, or $2.70 per share, compared with $32.4 million, or $1.50 per share, in the corresponding period last year. Results for the fiscal 2006 period include approximately five cents per share in expenses related to the company's refinancing of its credit facilities in the first quarter and five cents per share for the expensing of stock options. EBITDA for the first nine months of fiscal 2006 was $204.1 million, up 44.6% from a year ago.
During the third quarter, the company completed the acquisition of Shop-A-Snak Food Mart Inc., which operated 38 convenience stores in Alabama. It also signed definitive agreements to acquire six stores operating under the Fuel Mate banner in North Carolina, two additional stores in Florida and one in Mississippi. If these acquisitions close in the fourth quarter, as expected, it will bring the total number of stores acquired for the fiscal year to date to 111 stores, exceeding the 96 stores acquired in fiscal 2005. The Pantry also expects to have developed and opened a total of seven new large-store format locations this fiscal year, and to accelerate new store openings in fiscal 2007 and beyond (see related feature in this issue of CSP Daily News).
While year-to-year comparisons for our gasoline operations can be challenging, we will remain focused primarily on our strategies for driving the company's long-term growth and returns to shareholders, Sodini concluded. With our strong positions in attractive markets across the Southeast, the region's above-average projected growth rates, and our ample financial resources, The Pantry is well-positioned to grow both organically and through acquisitions.
Headquartered in Sanford, N.C., The Pantry had net sales for fiscal 2005 of approximately $4.4 billion. As of June 29, 2006, it operated 1,499 stores in 11 states under several banners including its primary flag, Kangaroo Express.
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