CARY, N.C. --The Pantry Inc., which operates the Kangaroo Express convenience store chain, recorded net income of $14.7 million for its fiscal fourth quarter ended Sept. 25, 2014. This compares to net income of $1 million in last year's fourth quarter.
Adjusted EBITDA was $71.1 million, up from $49 million in the prior-year quarter.
Comparable-store merchandise revenue increased 2.5%. Merchandise gross margin increased to 35.2% from 34.3%.
Fuel gross profit increased to $57.7 million from $47.8 million a year ago as retail fuel margin per gallon increased to 13.3 cents from 10.7 cents in the prior-year quarter. Comparable-store fuel gallons sold declined 2.5%.
Store operating and general and administrative expenses were $156.6 million compared to $162 million a year ago.
For fiscal-year 2014, net income was $13.2 million. This compares to net loss of $3 million in the last fiscal year.
Adjusted EBITDA was $220.9 million, up from $202.4 million for the prior fiscal year.
Comparable-store merchandise revenue increased 2.6%. Merchandise gross margin increased to 34.2% from 34%.
Fuel gross profit increased to $203.8 million, from $199.3 million a year ago as retail fuel margin per gallon increased to 12.2 cents from 11.5 cents a year ago. Comparable-store fuel gallons sold declined 2.9%.
Store operating and general and administrative expenses were $609.8 million compared to $609 million a year ago.
"We were pleased with our fourth quarter as we grew merchandise and fuel gross profit while controlling expenses," president and CEO Dennis G. Hatchell said. "Improved merchandising effectiveness and a 4.5% increase in sales per customer drove our 2.5% increase in comparable-store merchandise sales. We have now had positive comparable-store merchandise sales in 11 out of our last 12 quarters. Overall fuel performance was encouraging as our balanced approach led to an increase in fuel gross profit."
He continued, "Our team is working to build on all of these results in fiscal 2015."
Click here for additional coverage of The Pantry's quarter and year.
Based in Cary, N.C., The Pantry is a leading independently operated convenience store chain in the southeastern United States and one of the largest independently operated convenience store chains in the country. As of Dec. 9, 2014, the company operated 1,513 stores in 13 states under select banners, primarily Kangaroo Express.
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