SANFORD, N.C. -- After its stock fell Tuesday following guidance it issuedciting low gasoline marginsthat was below analyst expectations, The Pantry Inc. has issued a correction to the estimated fiscal 2008 interest expense stated on July 10. The retailer said it will release official results on August 2.
Interest expense for fiscal 2008 is expected to be approximately $94.3 million, rather than $98.6 million as previously disclosed, the company said. This adjustment increases the expected range for net income to between $64.5 million and $71.5 million, [image-nocss] or between approximately $2.80 and $3.10 per share, rather than between $2.70 and $3 as previously disclosed.
On Tuesday, chairman and CEO Peter J. Sodini said, These preliminary results primarily reflect our relatively low gasoline margins during the quarter as compared to the prior year quarter. This period was characterized by upward pricing pressure due to production constraints at U.S. refineries. We now expect earnings per share for the full fiscal year to be between $1.65 and $1.80, which is below our previous guidance range.
He added, Although fiscal 2007 has been a challenging year, we do not believe there has been a material change in the long-term fundamentals of our business. In fact, our competitive position in the marketplace has clearly improved with the strategic acquisitions we have completed this year. In fiscal 2008, assuming average gasoline margins are more in line with historical performance in the mid to high 12 cents per gallon, we would expect earnings per share and EBITDA, excluding future acquisitions, in a range between $2.70 to $3 and $304 to $316 million, respectively.
The Pantry, Sanford, N.C., 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, with revenues for fiscal 2006 of approximately $6 billion. As of June 28, 2007, the company operated 1,642 stores in 11 states under select banners, including Kangaroo Express, its primary operating banner.
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